Major Banks Unite for Stablecoin Initiative Amid Growing Competition

A consortium of 21 major banks has announced plans to launch a joint stablecoin initiative by late 2026. The project will debut with a US dollar-backed stablecoin, targeting market introduction in early 2027.

The participating institutions include Goldman Sachs, Citi, Bank of America, and other prominent financial players from diverse geographic markets. They aim to establish a new company that will issue the stablecoins, which are designed for payment processing and digital asset transactions.

The initiative is set to meet requirements under the US GENIUS Act and the EU's MiCA regulatory framework. The participating banks have emphasized their commitment to operating within these regulatory structures.

Circle's stock price declined by approximately 6% following the announcement, reflecting investor concerns about intensified market competition for USDC.