Bank of America, Citi Join 21-Firm Stablecoin Venture

A group of 21 major financial institutions, including Bank of America, Citi, Goldman Sachs and UBS, plans to establish a new company focused on issuing stablecoins for payments and digital asset transactions.

The yet-to-be-named stablecoin venture is expected to be formally established in the second half of 2026, subject to customary closing conditions. Its first product will be a U.S. dollar-denominated stablecoin, which the group aims to launch during the first half of 2027.

The financial institutions also intend to expand the platform with stablecoins linked to other Group of Seven currencies. A euro-denominated stablecoin is among the project's top priorities as the venture looks to build a broader global digital payments network.

The initiative represents a significant expansion from a project announced in October 2025, when 10 banks revealed they were exploring a blockchain-based payment asset backed one-for-one by reserves and designed to operate on public blockchains.

The consortium has since grown to include institutions across North America, Europe, East Asia, the Middle East and Africa. Participants include Wells Fargo, Deutsche Bank, Santander, Fidelity Investments, MUFG Bank and Standard Bank, in addition to Bank of America, Citi, Goldman Sachs and UBS.

The move comes as traditional financial institutions increase their involvement in the rapidly growing stablecoin market. The sector's total market capitalization has climbed from roughly $200 billion at the beginning of last year to approximately $303 billion.

U.S. dollar-backed tokens continue to dominate the stablecoin industry. Tether's USDT represents about 60% of the overall market, while Circle's USDC accounts for more than 20%.

The banking consortium said its stablecoins are intended to comply with major regulatory frameworks, including the U.S. GENIUS Act and the European Union's Markets in Crypto-Assets, or MiCA, rules.

The planned launch could introduce a major institutional competitor to established stablecoin issuers such as Tether and Circle. Circle shares fell more than 4% during Tuesday's trading session, while privately held Tether is not publicly traded.