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21 banks form venture to launch a US dollar stablecoin by 2027
The group plans a US dollar-denominated token in the first half of 2027 and aims to be compliant with both the GENIUS Act and MiCA.
Standard Chartered estimated in January that stablecoins could pull about $500 billion from US bank deposits by the end of 2028, raising particular concern for regional banks reliant on the spread between deposit costs and loan yields. Against that backdrop, CryptoSlate reports that 21 major financial institutions, including Bank of America, Citi, Goldman Sachs, and Wells Fargo, committed Sept. 1 to build a reserve-backed digital money venture. The banks said the venture will establish a company in the second half of 2026 and launch a US dollar-denominated stablecoin in the first half of 2027, with compliance planned for both the GENIUS Act and MiCA.
The initiative grew from an earlier 10-bank exploration started in October 2025. Its stated use cases include wholesale and institutional activity, cross-border payments, digital-asset settlement, and retail markets where client benefits can be achieved.
The report notes that stablecoins are fully backed tokens with reserves held in cash, bank balances, and short-dated government securities, with Treasuries making up most of Tether and Circle's reserve holdings. It also cites DefiLlama data showing total stablecoin market capitalization near $303.7 billion, with Tether’s USDT accounting for more than 60%. Citi’s research projects $1.9 trillion stablecoin issuance in its base case and $4 trillion in a bull case, implying additional issuance of roughly $1.6 trillion to $3.7 trillion from today’s level, according to the outlet.