Big Banks Eye Crypto Market with Planned Stablecoin Launch

A group of 21 major financial institutions plans to launch a U.S. dollar-pegged stablecoin by 2027, amid renewed interest in cryptocurrency driven by Bitcoin's recent price surge.

The initiative includes Bank of America, Capital One, Citi, Goldman Sachs, and Wells Fargo among the firms involved, which will issue a yet-to-be-named company to support the stablecoin by the end of this year.

Tether and Circle currently dominate the stablecoin market, with nearly 90% of the total value held in their USDT and USDC respectively. This competition could increase with the addition of major financial services firms to the market.