Banks Unite to Launch Dollar Stablecoin by 2027 Amid Blockchain Revival

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

The dollar-pegged stablecoin is used for crypto trading and to move money around the world in cryptocurrency form. 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 mainstream finance.

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