A consortium of 21 banks and financial institutions, including Bank of America, Wells Fargo, Citigroup, and Goldman Sachs, is gearing up to introduce a dollar stablecoin tailored for cross-border business payments.
According to the Wall Street Journal, the consortium plans to establish a new entity in the latter part of 2026 and aims to launch the stablecoin in the first half of 2027.
Stablecoins are digital assets designed to maintain a fixed value relative to a specific currency, such as the U.S. dollar.
The initial target audience for the stablecoin will be companies engaged in international money transfers, with potential expansion to individual customers in certain regions. Subsequent plans involve developing stablecoins linked to other major currencies within the Group of Seven, starting with the euro.
Noteworthy members of the consortium include Deutsche Bank, Santander, UBS, and Fidelity, alongside banks from Canada, Japan, the Middle East, and Africa.
The formation of this consortium serves as a preemptive measure against independent stablecoins that could divert deposits and transaction fees away from traditional banks.
While JPMorgan Chase has explored the idea of launching its own stablecoin, no concrete developments have taken place yet. Additionally, banks have collaborated on tokenizing deposits, representing conventional bank deposits in digital token form.
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