Banks Unite for Dollar Stablecoin Launch, Joining Crypto Gold Rush

A consortium of 21 financial institutions plans to launch a dollar-pegged cryptocurrency in early 2027, aiming to expand into stablecoins linked to other G7 currencies. The group includes Goldman Sachs, Bank of America, Citi, and Deutsche Bank, which will create a company this year to issue the cryptocurrency.

The plan comes as renewed interest in blockchain amidst rising crypto prices. A rebound in crypto prices in 2024 and US President Donald Trump's support for the sector sparked a revival of interest in using blockchain in the mainstream financial system.

The group will compete with a separate consortium of 37 financial institutions, which formed a company called Qivalis and plans to launch a euro-pegged stablecoin later this year. Some banks are members of both groups, including Spanish bank BBVA.