Global Banks Unveil Plan for USD Stablecoin Launch by 2027

21 major global banks, including Bank of America (BoA) and Goldman Sachs, are planning to launch a stablecoin by H1 2027. The consortium of banks aims to create a USD-based stablecoin that will be 100% backed and available across public chains. The initial focus will be on retail and wholesale payments, with the goal of expanding into additional G7 currencies in the long term.

The banks plan to operate globally, but the product will initially focus on the US dollar. The group's announcement also noted that the stablecoin will comply with regulatory frameworks such as the GENIUS Act and MiCA. This move is significant, given that banks have previously been hesitant to support stablecoins due to concerns about their impact on the financial system.

Mike Dudas, founder of VC firm 6thMan Ventures, was shocked by the banks' sudden change in stance, noting that they had previously expressed concerns about stablecoins being a threat to the US dollar and consumers. The banks' decision to launch a stablecoin also raises questions about their previous plans to introduce tokenized deposits.