21 global financial institutions are set to issue a US dollar-denominated stablecoin, with plans to launch other stablecoins tied to G7 currencies in the future.
21 global financial institutions will form a new company to issue a US dollar-denominated stablecoin, launching in H1 2027.
The new company, with its official name to be announced in “due course”, will be established in H2’ 2026 and will initially focus on launching a US dollar-denominated stablecoin, before later issuing other stablecoins tethered to global fiat currencies.
With a goal to operate globally, the new company plans to offer a Euro-denominated stablecoin after the launch of its USD-backed stablecoin. The long-term ambition is to issue a stablecoin to support additional G7 currencies; Great British Pound (GBP), Japanese Yen (JPY), and Canadian Dollar (CAD).
According to a press release, the 21 financial institutions will look to develop a “safe, robust and trusted” stablecoin which will be regulatory compliant with the US’ GENIUS Act and Europe’s Markets in Crypto Assets (MiCA) framework.
There will be a strong focus on making the US dollar-denominated stablecoin available to wholesale, institutional and retail markets for cross-border payments and on-chain settlement.
The 21 global financial institutions part of the new company are as follows:
- North America: Bank of America, Capital One, Citi, Fidelity Investments, Goldman Sachs, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, WisdomTree
- Europe: Banco Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds Banking Group, Coöperatieve Rabobank U.A., UBS
- East Asia: MUFG Bank
- Middle East: Sirius International Holding
- Africa: Standard Bank
Two key players drop out of new stablecoin company
In October 2025, 10 financial institutions announced that they will be launching a similar stablecoin programme to support G7 currencies across the world.
Out of the initial 10 companies that backed the October 2025 programme, only Barclays and BNP Paribas are not part of the new initiative.
Payment Expert has reached out to Barclays and BNP Paribas for comment.
The initial project focused on assessing “whether a new industry-wide offering could bring the benefits of digital assets and enhance competition across the market, while ensuring full compliance with regulatory requirements and best-practice risk management”, according to a joint statement.
At the time, the group confirmed it was in contact with regulators and supervisors in the relevant jurisdictions the participants primarily operate in.
Do banks want control of stablecoins?
With some of the most high-profile global banks seeking to launch a collaborative stablecoin – and more across multiple currencies – the new initiative demonstrates an increased desire from banks to control stablecoin issuance and settlement.
Beyond the 21-group backed stablecoin initiative, other banks such as JP Morgan, Revolut and ANZ Bank have either explored or launched pilots for their own stablecoins, seeking to gain market share of a stablecoin movement that has only surged in interest over time.
Why banks and other financial institutions have such a keen interest in launching their own stablecoins can be attributed to not being able to control the issuance of the most popular stablecoins in the market currently; USDT by Tether and USDC by Circle.
With stablecoins in some jurisdictions able to offer high-yield for customers and businesses by simply holding them, banks in the US have pointed out that this could eventually cause a flight on commercial deposits from traditional banks, particularly smaller, community banks.
This was eventually addressed and prohibited in the US Senate Banking Committee’s draft of the CLARITY Act. However, while issuers like Tether and Circle do work with banks to settle stablecoin payments on legacy and instant payment rails, this is more in partnership as opposed to sole control of the entire stablecoin payment journey.
Some banks have opted to pursue tokenised deposits as a means for instant settlement, and global governments in China and Europe specifically, believe a central bank digital currency (CBDC) would better support their citizens’ need for a digital currency.
But if stablecoins break through the mainstream consciousness of retail consumers, traditional financial institutions may have no choice but to adopt and issue their own stablecoins to not only meet their consumer’s needs, but also to control the issuance, deposits and settlements that come with stablecoin payments.
