Wall Street Banks Unite to Launch Own Stablecoin Rival

Wall Street's big banks are teaming up to create their own stablecoin, marking a significant shift in the market. A consortium of 21 major financial institutions plans to establish a company in H2 2026 to issue a U.S. dollar-backed stablecoin. The group, which has expanded from 10 initial participants, includes some of the world's largest banks and asset managers.

The initiative aims to create stablecoins linked to G7 currencies, with the euro-denominated token being the next priority after the US dollar-backed one. The project will be GENIUS Act and MiCA-compliant, as applicable. By launching their own stablecoin, these banks are positioning themselves to capture payments, settlement, and cross-border transaction flows.

The challenge for the consortium will be distribution, convincing customers to use a bank-backed token over established networks like Tether's USDT and Circle's USDC. These two tokens currently dominate the market, with Tether alone holding more than $180 billion of stablecoins in circulation.