Banks Unite for Dollar Stablecoin Launch in 2027

A group of 21 major financial institutions, including Goldman Sachs and Bank of America, is planning to issue a dollar-pegged stablecoin in the first half of 2027. This move aims to expand into stablecoins pegged to other G7 currencies, with the euro being a priority.

The group, which was initially announced last October with just 10 banks involved, will create a company in 2026 to issue the cryptocurrency. This effort is part of a revival of interest in using blockchain technology in the mainstream financial system, sparked by a rebound in crypto prices in 2024 and former US President Donald Trump's support for the sector.

However, there are few signs of demand for stablecoins issued by banks, with the market dominated by El Salvador-based Tether. Tether has issued over $180 billion worth of its dollar-pegged token and made billions in profits from investing reserves in assets like US Treasuries.