Banks Unite to Launch Dollar-Pegged Stablecoin Amid Regulatory Push

A group of 21 financial institutions, including Goldman Sachs, Bank of America, Citi, and Deutsche Bank, plans to launch a dollar-pegged stablecoin in the first half of 2027.

The banks have formed a consortium that aims to expand beyond a US dollar-linked token to stablecoins pegged to other G7 currencies, with the euro identified as a priority.

Stablecoins are cryptocurrencies designed to maintain a stable value against an underlying asset, most commonly a fiat currency such as the US dollar.

Singapore is moving towards a formal regulatory framework for stablecoins, which would require regulated issuers to conduct stress tests and have recovery and orderly wind-down plans in place.