Big Banks Gear Up to Launch Dollar-Pegged Stablecoin in 2027
A group of 21 major banks, including Goldman Sachs and Bank of America, are planning to launch a new company that will issue a US dollar-pegged stablecoin in the first half of 2027.
The move aims to tap into the growing demand for stablecoins, which have become popular as a way to quickly transfer funds and as 'cash' for crypto trading. Tether, a specialist issuer based in El Salvador, has issued over $180 billion worth of its dollar token, with reserves invested in assets such as US Treasuries.
The banking group's plans face competition from other consortia and regulatory concerns. European Central Bank President Christine Lagarde has warned that stablecoins could complicate monetary policy and financial stability. Early bank experiments have been small-scale, such as Societe Generale's dollar-pegged token, which shows about $12.5 million in circulation.