Banks Unite to Launch Dollar-Pegged Stablecoin by 2027

A group of 21 financial institutions, including Goldman Sachs and Bank of America, plan to create a company in 2026 to issue a dollar-pegged stablecoin in the first half of 2027. The group aims to expand into stablecoins pegged to other G7 currencies, with the euro as a priority.

The move is part of a revival of interest in blockchain technology and cryptocurrency trading, sparked by a rebound in crypto prices in 2024 and US President Donald Trump's support for the sector. However, there are few signs of demand for stablecoins issued by banks, with the market dominated by El Salvador-based Tether.

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