21 Banks to Launch Dollar Stablecoin by H1 2027

On Sept. 1, twenty-one major banks from North America, Europe, Asia, Africa and the Middle East agreed to form a company that will issue a US dollar-denominated stablecoin by the first half of 2027. The group plans to incorporate the new firm in the second half of 2026.

The banks named among the participants include Bank of America, Citi, Goldman Sachs and Wells Fargo. The consortium traces its origins to a 10-bank exploratory effort launched in October 2025 and expanded to the current membership over the following months.

Citi’s research projects stablecoin issuance reaching $1.9 trillion by 2030 in a base scenario and up to $4 trillion in a bull case. Standard Chartered’s January estimate put potential outflows from US bank deposits at about $500 billion by the end of 2028. Total stablecoin market capitalization currently stands near $303.7 billion, with one major issuer holding more than 60% of that market.

The banks say the planned token will comply with the GENIUS Act, enacted in July 2025, and with the EU’s Markets in Crypto-Assets framework. The GENIUS Act takes effect on the earlier of Jan. 18, 2027, or 120 days after federal regulators finalize implementing rules; the consortium’s launch target overlaps that regulatory timing.

Stated use cases for the planned stablecoin include wholesale and institutional transactions, cross-border payments, digital-asset settlement and selected retail services. Stablecoins are typically fully backed by reserves such as cash, bank balances and short-dated government securities; major existing issuers maintain large Treasury positions.

The consortium describes its approach as a way to preserve existing customer distribution, compliance processes and settlement services if balances move into token form. The participating banks expect to retain roles in reserve management, custody, settlement fees and compliance as dollars migrate into programmable tokens.

Distribution and liquidity present practical challenges. A regulated bank-issued dollar token from a separate issuer had roughly $12.5 million in circulation, illustrating that regulatory compliance alone has not produced wide usage. A different 37-institution project is developing a euro-pegged stablecoin, showing competition across currencies and issuer types.

Industry analyses outline several possible outcomes: broadly scaled bank-issued tokens that share issuance and transaction flows with existing stablecoins; a narrower role for bank tokens in wholesale and cross-border settlement without displacing public-market stablecoins; or a compliant token that fails to attract liquidity and remains limited in use. The banks’ timeline and regulatory compliance plans are central to how the market develops.