21 Banks, Including Goldman Sachs and UBS, Plan Joint Stablecoin to Rival Tether and Circle

A consortium of 21 international financial institutions is preparing to launch a stablecoin intended to challenge the dominance of Tether's USDT and Circle's USDC. The group includes Goldman Sachs, UBS and Bank of America, according to details of the plan now emerging.

The project traces back to October last year, when ten banks first announced they were exploring the idea. That initial group has since grown to 21 institutions, reflecting broader interest across the sector in issuing bank-backed digital tokens.

Under the current timeline, the consortium aims to establish a joint company by the end of this year. The first stablecoin, backed by the US dollar, is planned for launch in the first half of 2027.

Euro token among priorities

Beyond the dollar-backed token, the group intends to issue six additional stablecoins tied to G7 currencies. A euro-denominated stablecoin has been named as a priority among these, a detail likely to draw particular attention from European banks and regulators given the currency's weight in the bloc's financial system.

The consortium is positioning the tokens for use by banks, institutional investors and retail markets alike. Planned use cases include cross-border payments and the settlement of digital assets, areas where stablecoins have already gained traction outside the traditional banking system.

Regulatory alignment

The banks intend to structure the stablecoins to comply with the United States' GENIUS Act, which has not yet been passed, as well as the European Union's Markets in Crypto-Assets regulation, known as MiCA. Aligning with both frameworks from the outset suggests the group is designing the tokens with transatlantic use in mind rather than a single jurisdiction.

Proponents of the plan point to the banks' existing infrastructure and their access to millions of customers as a potential advantage over Circle and Tether, which have built their market positions largely outside the traditional banking sector.

For now, the project remains at an early stage, with the joint company yet to be formed and the first token not expected before 2027. The consortium's growth from ten to 21 institutions in under a year, however, signals that interest in a bank-issued alternative to existing stablecoins is not confined to a handful of players.