A coalition of 21 financial institutions, including Goldman Sachs, Bank of America, Citi and Deutsche Bank, is preparing to create a new company that will issue a cryptocurrency tied to the U.S. dollar. The planned stablecoin is expected to launch during the first half of 2027, marking a significant effort by traditional banks to establish a presence in the expanding digital-asset market.
The participating institutions said the company is expected to be formed in 2026. Beyond the initial dollar-linked token, the group intends to develop stablecoins connected to other G7 currencies. The euro is expected to be among the first priorities as the initiative expands.
The project has grown considerably since it was originally announced in October 2025. At that time, only 10 banks were involved. The membership has since increased to 21 institutions, reflecting the banking industry’s growing interest in blockchain technology and digital forms of money.
Stablecoins are digital currencies designed to maintain a relatively stable value by linking their price to an underlying asset, most commonly a national currency such as the U.S. dollar. They are already widely used within cryptocurrency markets and can also facilitate the movement of money across borders.
Renewed interest in these digital assets followed the recovery in cryptocurrency prices during 2024, along with U.S. President Donald Trump’s support for the crypto sector. These developments have encouraged established financial institutions to consider how blockchain-based systems could become part of the broader financial infrastructure.
The new banking alliance will not be entering an empty market. It will compete with another large group of financial institutions that is pursuing its own stablecoin project.
A consortium made up of 37 financial institutions has created Qivalis and plans to introduce a stablecoin backed by the euro later in 2026. There is some overlap between the two initiatives, with several banks participating in both groups. Spanish lender BBVA is one example.
Competition is also coming from companies outside the conventional banking industry. World Liberty Financial, the crypto venture associated with President Trump’s family, has already launched a stablecoin of its own.
Despite increasing institutional interest, stablecoins issued by banks have yet to demonstrate widespread consumer adoption. The broader market continues to be led by Tether, the El Salvador-based company behind the largest established dollar-pegged stablecoin.
Tether says its dollar-linked token has surpassed $180 billion in issuance. The company has also generated billions of dollars in profits from investing the reserves supporting its stablecoin, including in U.S. Treasury securities.
Some traditional banks have already entered the market independently. Societe Generale, which is not part of either of the two banking groups, became the first major bank to launch a dollar-backed stablecoin through its digital-assets subsidiary last year.
However, the French bank’s product has attracted limited usage so far. Its website shows that $12.5 million worth of the token was in circulation. The relatively small figure illustrates the challenge banks face in persuading users to adopt institution-backed digital currencies when established cryptocurrency issuers already have a strong position.
Private stablecoins have also drawn scrutiny from central banks. European Central Bank President Christine Lagarde has cautioned that privately issued stablecoins could pose challenges to monetary policy and financial stability.
For the 21-bank consortium, the proposed 2027 launch represents an attempt to combine the resources and credibility of established financial institutions in the digital-currency space. Goldman Sachs, Bank of America, Citi and Deutsche Bank are among the major participants seeking to create a shared platform that could eventually support stablecoins tied to several G7 currencies.
The initiative reflects the wider transformation taking place across the financial sector as banks examine digital assets, blockchain technology and alternative payment systems. However, the limited circulation of existing bank-issued stablecoins demonstrates that institutional backing alone may not be enough to generate substantial demand.
The proposed dollar token will therefore enter a competitive market dominated by established issuers while regulators continue to examine the potential consequences of privately created digital currencies. Its performance will ultimately depend on whether companies, financial institutions and consumers find sufficient practical value in using a stablecoin backed by traditional banks.
If the plan stays on schedule, the first half of 2027 will provide an important test of whether a large coalition of global banks can establish a credible alternative to the dominant stablecoin issuers.
