21 Global Financial Institutions to Launch USD Stablecoin by H1 2027
- A consortium of 21 financial institutions, including Bank of America, Citi, and Goldman Sachs, plans to issue a USD stablecoin.
- The new company is set to be established in the second half of the year, with a target launch for the stablecoin in the first half of 2027.
- The stablecoin will be backed by reserves at a ratio of 1:1 and will utilize public blockchains for various uses, including cross-border payments.
- The group has expanded from an initial announcement of ten firms last October to include major banks across North America, Europe, East Asia, the Middle East, and Africa.
- This initiative aims to compete with existing USD stablecoins primarily used in cryptocurrency trading.
The formation of this consortium reflects a growing trend among banks to create regulated alternatives to existing digital currencies as they seek compliance with regulations like the GENIUS Act and EU’s MiCA.
With plans for a USD stablecoin backed by reserves launching in early 2027, this project represents a significant shift in how traditional financial institutions are engaging with digital assets.
