21 Banks Launch Stablecoin Venture with Global Reach
Twenty-one international financial institutions have formed a new company to support the issuance of a stablecoin, starting with a US dollar-denominated product.
The expanded consortium includes banks and investment groups from North America, Europe, East Asia, the Middle East, and Africa. It builds on an earlier effort by a smaller group that had been examining a 1:1 reserve-backed digital payment asset for use on public blockchains.
Participants include Bank of America, Citi, Goldman Sachs, Wells Fargo, Deutsche Bank, UBS, Banco Santander, Lloyds Banking Group, Standard Bank, and MUFG Bank. Others in the group are Capital One, Fidelity Investments, PNC Financial Services, Scotiabank, TD Bank Group, WisdomTree, BBVA, Commerzbank, Crédit Agricole, Rabobank, and Sirius International Holding.
The proposed company is expected to operate globally and initially focus on a stablecoin pegged to the US dollar. Over time, it aims to expand issuance into other G7 currencies, with a euro-denominated offering identified as the next priority.