Banks Team Up for Stablecoin Launch Amid Intensified Market Competition
A coalition of 21 major banks has formed a new stablecoin venture set to launch in late 2026. The initiative includes Goldman Sachs, Citi, and Bank of America, with other notable participants including Deutsche Bank, UBS, Santander, Wells Fargo, MUFG Bank, Fidelity Investments, Standard Bank, and several others.
The banks plan to issue a dollar-backed stablecoin in the first six months of 2027, followed by euro-pegged tokens and further expansion into other major currencies. The venture will adhere to U.S. GENIUS Act requirements and European Union's MiCA regulatory standards.
The announcement has sparked concerns about intensified market competition for USDC, with Circle's stock price declining around 6% after the news broke. This move comes as part of a broader trend in the banking sector, with Societe Generale launching euro and dollar-denominated stablecoins and Fidelity introducing its proprietary dollar stablecoin.