Banks Flock to Blockchain-Based Stablecoins in Major Shift

Financial institutions are increasingly turning to blockchain-based systems for transactions and settlements, signaling a significant shift in traditional finance's approach.

A group of 21 banks has announced plans to establish a new company that will issue stablecoins for payments and digital asset transactions.

The initiative marks a departure from the debate over whether public blockchains can support settlement, as experts say it represents a broader change in how traditional finance approaches stablecoins.

Banks such as Bank of America, Citi, Goldman Sachs, and UBS are participating in the consortium, alongside financial firms from various regions.