Banks Join Forces to Issue Dollar Stablecoin Amid Tightening Regulations

The world's largest banks and asset managers have formed a joint venture to issue a US dollar stablecoin, targeting a market launch in the first half of 2027. The consortium, comprising 21 institutions including Goldman Sachs, Citi, Bank of America, Deutsche Bank, and UBS, aims to tap into the $304 billion global stablecoin market.

The banks plan to issue a dollar-denominated stablecoin, with a euro-pegged token planned as the next priority. Unlike Tether or Circle, which are single-company issuers, this token will be owned collectively by its bank backers.

The development comes as regulatory frameworks for stablecoins are being written on three continents: in Singapore, where the Monetary Authority of Singapore has proposed a Single-Currency Stablecoin regime; in the US, where the Treasury Department has proposed licensing requirements starting January 18, 2027; and in the UK, where the Financial Conduct Authority has finalized a rulebook that folds stablecoins into its existing supervisory structure.