21 Global Banks Partner to Launch Stablecoin Company
A group of 21 major financial institutions has announced plans to establish a new company that will help support the issuance of stablecoins. The group includes global banks such as Goldman Sachs and MUFG Bank, as well as other financial firms like Fidelity Investments and Scotiabank.
The new company aims to provide a stablecoin solution by 2027's first half, with an initial focus on providing US dollar-backed stablecoins. In the long term, the plan is to expand to other G7 currency-backed stablecoins, with a priority on developing euro-backed stablecoins.
This effort follows last year's announcement by 10 major banks that they would explore issuing digital money backed by reserves in the G7 currencies. The group has stated its intention to combine expertise from participating financial institutions to provide a compliant, robust governance structure, and risk management for institutional investors.