Banks Reversing Stance on Stablecoins: Joint Project in Works

The world's largest banks are working on a joint stablecoin project, according to a report from the Wall Street Journal. Bank of America, Wells Fargo, and Santander are among the more than a dozen major banks involved in the consortium.

The plan is to create a token pegged to the US dollar, with euros and other G7 currencies potentially following. The consortium has not revealed how the coin will be governed or backed, nor has it set a launch date.

This move comes after these same banks spent months pushing for tighter regulations on stablecoins through the GENIUS Act, which President Trump signed into law in July 2025. They argued that nonbank issuers like Circle's USDC and Tether's USDT posed a threat to traditional banking.

However, it appears that the banks have now decided to build their own version of stablecoins, despite previously trying to limit competition from nonbank issuers. The banks are racing to develop their own technology before regulators finalize rules for stablecoin issuers under the GENIUS Act.