Banks Rush into Stablecoin Market as Singapore Tightens Rules
A group of 21 major financial institutions, including Goldman Sachs, Bank of America, Citi and Deutsche Bank, are planning to launch a dollar-pegged stablecoin in the first half of 2027. The consortium was initially announced with 10 banks in October 2025, but has since expanded its membership.
The bank-led initiative will compete with Qivalis, another group of 37 financial institutions that plans to launch an euro-pegged stablecoin later this year. Stablecoins are cryptocurrencies designed to maintain a stable value against an underlying asset, such as the US dollar.
Singapore is moving towards introducing a formal regulatory framework for stablecoins, with its Monetary Authority opening a consultation on proposed amendments to the Payment Services Act. The new rules would require regulated stablecoin issuers to conduct stress tests and have recovery plans in place.