NEW YORK — Twenty-one major financial institutions including Goldman Sachs, Bank of America, Citi and Deutsche Bank announced plans to launch a U.S. dollar stablecoin, confirming that privately issued digital money has finally matured enough to be privately issued by banks.
The institutions plan to create a new company that could issue the dollar-backed token by early 2027, with euro and other G7-currency stablecoins potentially following.
Financial authorities have spent years warning that stablecoins could threaten monetary sovereignty, financial stability and the traditional banking system, concerns the industry now hopes to address by putting the traditional banking system in charge of the stablecoins.
“The technology was always promising,” said banking analyst Robert Ellison. “The primary systemic risk was that someone else might make the money.”
The consortium will enter a market currently dominated by Tether, whose dollar-linked tokens exceed $180 billion in circulation, giving regulated financial institutions an opportunity to compete in the innovative new business of taking dollars, creating digital representations of those dollars, and charging people for doing something dollars were already doing.
Bank executives stressed that their stablecoin will combine blockchain technology with the institutional safeguards consumers expect from organizations that previously required government assistance because they had become too important to fail.
Inspired by:
Reuters - "Stablecoins not a credible means of payment at scale, BIS chief says" (August 29, 2026)
