Twenty-one financial institutions are preparing a new digital currency venture aimed at making cross-border payments faster while strengthening banks’ position in the rapidly growing digital asset market
New York, New York, 9 September 2026 – The world of digital finance is moving closer to traditional banking as some of the biggest financial institutions join forces to develop their own stablecoin. A group of 21 financial companies, including Bank of America, Citigroup, Goldman Sachs, Wells Fargo and several major international banks, plans to establish a new company to support the issuance of a stablecoin solution.
The initiative is expected to reach the market in the first half of 2027. The planned digital token will initially be denominated in U.S. dollars, with the group considering stablecoins linked to other major currencies in the future.
A stablecoin is a type of digital asset designed to maintain a relatively stable value by being linked to a traditional currency or another asset. Unlike cryptocurrencies that can experience large price movements, stablecoins are generally designed for more predictable transactions. This makes them particularly useful for payments, money transfers, and digital asset settlements.
For the banking industry, the new project represents a major step into blockchain-based financial services. The participating institutions plan to develop a digital payment asset that can be used across public blockchain networks while maintaining strong compliance, governance and risk management standards.
The initial focus is expected to be commercial and institutional customers. However, the exact use cases could vary between markets, with some regions potentially allowing retail applications as well. Cross-border payments are one of the key areas where the technology could make a difference.
International payments can involve several financial institutions, currencies, and processing systems. These processes may take time and can involve multiple fees. A stablecoin operating on blockchain infrastructure could potentially allow value to move more directly between parties, creating faster and more efficient payment options.
The banking consortium also reflects a broader change in how traditional financial institutions view digital assets. Banks have increasingly been exploring stablecoins, tokenized deposits, and other forms of blockchain-based money as digital finance becomes more widely adopted.
Tokenized deposits and stablecoins are related but different concepts. A tokenized deposit represents traditional bank money in digital form, while a stablecoin is a digital token designed to maintain a stable value against an underlying currency or asset. Banks are exploring both approaches as they look for ways to modernize financial infrastructure.
The group behind the new venture includes financial institutions from North America, Europe, Asia, the Middle East and Africa. Alongside Bank of America, Citigroup, Goldman Sachs and Wells Fargo, participants include Capital One, PNC Financial Services, TD Bank Group, UBS, Banco Santander, BBVA, Deutsche Bank, Commerzbank, Lloyds Banking Group and MUFG Bank.
The consortium is also planning for the stablecoin to meet relevant regulatory requirements, including the U.S. GENIUS Act and the European Union’s Markets in Crypto Assets framework where applicable. This focus on compliance could be important as financial institutions attempt to bring blockchain-based payment products into mainstream banking.
The move comes as banks face growing competition from fintech companies and established digital asset businesses that are already developing blockchain-based payment solutions. Rather than remaining on the sidelines, major financial institutions are now building their own infrastructure and exploring how digital currencies can complement traditional banking.
JPMorgan Chase has separately examined the possibility of creating its own stablecoin, although those discussions remain preliminary and have not resulted in an active product.
The planned bank-backed stablecoin could therefore mark an important development in the evolution of digital payments. If successfully launched, it could bring blockchain technology deeper into everyday financial operations and provide businesses with another option for moving money across borders.
For consumers and companies, the bigger story is not simply the creation of another digital currency. It is the growing connection between traditional banking, blockchain technology, and digital payments. As major banks continue investing in this space, stablecoins could become an increasingly important part of the future financial ecosystem.
