21 Banks Team Up to Launch Dollar Stablecoin in 2027
A group of 21 financial institutions, including Goldman Sachs and Bank of America, plan to launch a company this year that will issue a dollar-pegged stablecoin in the first half of 2027. The consortium aims to expand into stablecoins pegged to other G7 currencies, with the euro being a priority.
The move is part of a revival of interest in blockchain technology in mainstream finance, sparked by a rebound in crypto prices in 2024 and support from US President Donald Trump's family business, World Liberty Financial, which has issued its own stablecoin. However, despite growing interest, there are few signs of demand for bank-issued stablecoins.
The market is dominated by Tether, an El Salvador-based company that has issued over $180 billion worth of its dollar-pegged token and made billions in profits through investments in assets such as US Treasuries. European Central Bank President Christine Lagarde has warned about the risks posed by privately issued stablecoins for monetary policy and financial stability.