Twenty-one major financial institutions are joining forces to establish a company that plans to issue a US dollar-backed stablecoin, marking a significant push by traditional finance into the rapidly expanding stablecoin market.
The group includes major names such as Goldman Sachs, Bank of America, Citi, UBS and Deutsche Bank, alongside asset managers and other financial institutions spanning several regions.
The venture will initially focus on a single US dollar stablecoin, with a market launch targeted for the first half of 2027. The group also intends to introduce stablecoins denominated in other G7 currencies over time, with a euro-backed token expected to be the next priority.
The company has not yet been named and is expected to be formally established during the second half of 2026.
The planned stablecoin is intended for institutional, wholesale and retail users, with cross-border payments and digital asset settlement identified among its potential early applications.
Project Expands From 10 Institutions to 21
The initiative significantly expands an effort first revealed in October 2025, when 10 global systemically important banks announced they were exploring a shared stablecoin backed by reserves on a one-to-one basis and operating on public blockchains.
Eight members of that original group remain involved: Banco Santander, Bank of America, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank and UBS.
Another 13 institutions have since joined the second phase, taking the project across multiple global financial regions.
New participants include Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, Wells Fargo and WisdomTree in North America. European additions include BBVA, Commerzbank, Crédit Agricole, Lloyds Banking Group and Rabobank.
The broader initiative also includes Sirius International Holding from Abu Dhabi and South Africa's Standard Bank, while MUFG represents East Asia.
Fidelity and WisdomTree Bring Existing Stablecoin Experience
Two particularly notable participants are Fidelity Investments and WisdomTree, as both already have experience issuing their own dollar-linked digital assets.
Fidelity launched FIDD in January 2026 through a federally chartered national trust bank, while WisdomTree already operates USDW under a New York trust charter.
Their participation in a joint initiative suggests major financial institutions may see significant advantages in building shared liquidity and distribution around a common token, rather than relying exclusively on proprietary stablecoins.
Stablecoins benefit heavily from network effects. A token accepted across numerous banks, trading venues, payment systems and digital asset platforms could potentially achieve greater utility than one supported by a single institution.
The joint structure could therefore provide participating firms with shared infrastructure while extending the token's potential reach across multiple financial networks.
Banks Target Market Dominated by Non-Bank Issuers
The planned launch could introduce a significant new competitor into a stablecoin industry that has historically been dominated by specialized crypto companies rather than global banks.
A stablecoin jointly supported by 21 established financial institutions could potentially connect traditional banking infrastructure with blockchain-based settlement systems.
The group has identified cross-border payments and digital asset trade settlement as two initial areas where the token could be used.
Public blockchain deployment would also distinguish the initiative from many existing bank-issued digital money projects, which often rely on private or permissioned networks.
However, several important details remain unresolved. The group has not announced which blockchain networks will support the stablecoin, how reserves will be managed or exactly how governance will operate.
Stablecoin Designed Around US and EU Regulations
Regulatory compliance is expected to be central to the project.
The participating institutions said the initiative intends to operate in accordance with the United States' GENIUS Act and the European Union's Markets in Crypto-Assets framework, or MiCA, where applicable.
Designing the stablecoin around both frameworks could help prepare it for distribution across two of the world's largest regulated financial markets.
The planned company must still be formally established, and the token remains under development. A commercial launch is currently targeted for the first half of 2027, meaning its final structure could change before release.
Still, the expansion from 10 banks exploring the concept to 21 financial institutions preparing a joint venture represents a significant step.
If launched as planned, the project could become one of the largest coordinated attempts by traditional financial institutions to enter the stablecoin market and challenge the dominance of existing non-bank issuers.
