An alliance of 21 international banking giants, featuring Goldman Sachs, Bank of America, Citigroup and Deutsche Bank, have announced that it plans to establish a joint venture entity this year to roll out a US dollar-backed cryptocurrency during the first half of 2027. According to a report by news agency Reuters, the initiative originally surfaced in October 2025 with an initial cohort of just 10 lenders. In a statement, the group explained that its long-term strategy includes issuing stablecoins backed by other G7 sovereign currencies.
Renewed interest in Blockchain settlement
Stablecoins operate as digital assets pegged to conventional fiat currencies, primarily serving as liquidity rails for cryptocurrency trading and cross-border money transfers. While initially confined to niche crypto applications, the asset class has gained significant traction. That institutional resurgence has been accelerated by a broader market price rebound in 2024 alongside explicit regulatory backing for digital assets from US President Donald Trump.The new banking coalition is set to challenge an earlier rival consortium of 37 financial institutions operating under the banner of Qivalis, which intends to introduce a euro-linked stablecoin later this year. Several prominent lenders, including Spain’s BBVA, maintain seats in both consortiums.Despite Wall Street’s aggressive coordination, institutional bank-issued tokens face an uphill battle to generate meaningful user adoption. The first is that the broader stablecoin arena remains controlled by El Salvador-based Tether, which claims more than $180 billion in circulating supply for its flagship dollar token while generating billions in profit by parking collateral reserves in US Treasuries.Standalone bank efforts have struggled for traction and the push by commercial lenders also faces scrutiny from monetary authorities.
