Banks Unite to Launch Stablecoin Initiative Amid Shift towards Programmable Money
The banking industry is shifting its focus towards stablecoins and tokenized deposits, which may look similar at first glance but have distinct economic differences.
A consortium of 21 banks, including Bank of America, Citi, Goldman Sachs, and Wells Fargo, has announced plans to establish a new company dedicated to issuing stablecoins. The group intends to launch a US dollar-denominated stablecoin in the first half of 2027 and expand into additional G7 currencies, with the euro as a priority.
JPMorgan is reportedly exploring its own stablecoin initiative alongside its existing tokenized-deposit infrastructure. Tokenized deposits are commercial bank liabilities that provide blockchain-like programmability while preserving the banking relationship around deposits, liquidity, and balance-sheet funding.
The banks' strategy involves building a portfolio of programmable money to route transactions towards whichever form has the right combination of liquidity, portability, regulation, and reach. The BankChain Alliance is planning a network that will accommodate tokenized deposits, stablecoins, smart payments, and automated settlement by 2027.