A group of 21 leading financial institutions from across North America, Europe, East Asia, the Middle East and Africa has announced plans to create a new company dedicated to developing and issuing stablecoins. The yet-to-be-named venture is expected to be formally established in the second half of 2026, subject to customary closing conditions, with its first product—a U.S. dollar-denominated stablecoin—targeted for launch in the first half of 2027.

The initiative builds on an earlier effort disclosed in October 2025, when an initial group of 10 global systemically important banks explored a one-for-one reserve-backed form of digital money designed to operate on public blockchains. The consortium has since more than doubled in size.

Participating Institutions and Scope

Core members include Bank of America, Citi, Goldman Sachs, UBS, Deutsche Bank, Santander, MUFG Bank and TD Bank. Additional participants span Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, Wells Fargo, WisdomTree, BBVA, Commerzbank, Crédit Agricole, Lloyds Banking Group, Rabobank, Sirius International Holding of Abu Dhabi and Standard Bank.

The planned stablecoins are intended for wholesale, institutional and retail users. Early use cases identified by the group include cross-border payments and the settlement of digital asset transactions. After the dollar product, the consortium intends to expand into stablecoins denominated in other Group of Seven currencies, with a euro-denominated version listed as the next priority.

Market Context and Competitive Position

The announcement arrives as the overall stablecoin sector has expanded significantly. Total market capitalization has risen from roughly $200 billion at the start of the prior year to approximately $303 billion. U.S. dollar-backed tokens continue to dominate, with Tether’s USDT accounting for about 60 percent of the market and Circle’s USDC representing more than 20 percent.

Two participants, Fidelity Investments and WisdomTree, already operate their own dollar stablecoins—FIDD and USDW, respectively—yet have chosen to join the shared venture. The move signals a preference among some institutions for a collaborative platform capable of broader reach rather than purely proprietary tokens.

Shares of Circle declined more than 4 percent in trading on the day of the announcement. Tether remains privately held.

Broader Banking Activity in Digital Payments

The joint project forms part of a wider shift by traditional financial firms into blockchain-based payment infrastructure. Several banks and payment companies have advanced related products. Revolut has begun a phased rollout of its euro-denominated EURR stablecoin for eligible customers in select European markets, with Bridge Building, a Stripe company regulated as an electronic money institution, serving as issuer. Visa has expanded stablecoin settlement pilots, including participation in a Monetary Authority of Singapore initiative testing settlement across weekends and holidays, and reported a $7 billion annualized settlement run rate earlier in the year.

JPMorgan has evaluated the possibility of issuing a stablecoin but has stated it has no active launch plans. Its existing JPM Coin operates as a tokenized commercial bank deposit available only to approved institutional clients, distinct from a reserve-backed stablecoin.

Other collaborative efforts are also underway. Europe’s Qivalis consortium has grown to 37 banks and is pursuing a fully reserved euro stablecoin, while a group of 39 U.S. state banking associations has formed the BankChain Alliance with a 2027 target for supporting stablecoins, tokenized deposits and automated settlement.

The 21-institution venture positions the participating banks to compete directly in a market long led by non-bank issuers, while aligning product design with emerging regulatory standards in the United States and Europe.