- Twenty-one banks and asset managers committed on Sept. 1 to form a still-unnamed company in the second half of 2026 to issue a dollar stablecoin.
- The group is targeting a first-half 2027 launch for wholesale, institutional and retail payments, with a euro token listed as the next priority.
- The venture is intended to comply with the U.S. GENIUS Act and the EU MiCA framework where applicable.
- The stablecoin market is about $303 billion, with Tether holding roughly 60% and Circle more than 20%; Circle shares fell about 6% on the news.
A group of 21 financial institutions, including Bank of America, Citi, Goldman Sachs and UBS, said Tuesday they have committed to establish a new company in the second half of 2026 to issue a dollar-denominated stablecoin, according to a joint announcement.
The company has not been named and the commitment is subject to closing conditions. The group said it aims to bring the product to market in the first half of 2027 for wholesale, institutional and retail use, including cross-border payments and digital asset settlement. A longer-term plan calls for tokens in other G7 currencies, with a euro-denominated offering listed as the priority.
The release said the initiative will combine “bank-grade compliance, strong governance, distribution and institutional risk management” and is intended to be “GENIUS Act and MiCA-compliant, as applicable.” The effort expands an October 2025 project in which 10 banks explored a 1:1 reserve-backed payment asset on public blockchains. Membership now spans five regions and includes Wells Fargo, Fidelity Investments, WisdomTree, Deutsche Bank, Santander, BBVA, MUFG Bank and Standard Bank. Boston Consulting Group and Brunswick Group are advising and have no authority to bind members.
Key design choices remain open. The group has not named an issuer structure or a blockchain, as noted in follow-up reporting. That leaves a long runway before any token can compete with incumbents. The broader stablecoin market has grown from about $200 billion at the start of 2025 to roughly $303 billion, with Tether’s USDT accounting for about 60% and Circle’s USDC more than 20%, CoinDesk reported, citing DeFiLlama data. Unchained put USDT circulation near $183.3 billion and USDC near $73.6 billion on Tuesday.
Investors treated the bank plan as another competitive threat to listed issuer Circle. CoinDesk said CRCL shares were down about 6% in Tuesday’s session, after a steeper June drop when more than 140 firms backed a separate Open USD token. Banks are also pursuing parallel rails: some of the same U.S. names sit behind a tokenized deposit network planned by The Clearing House for the first half of 2027, keeping funds inside insured deposits rather than a stablecoin reserve.
For traders, the announcement is a signal that large banks intend to contest payments and settlement share once U.S. and EU rules are operational — not an imminent supply shock. Execution still depends on closing the new company, choosing a chain, and meeting GENIUS Act and MiCA licensing tests before any H1 2027 go-live.
