BofA, Citi, Goldman Sachs among 21 institutions planning stablecoin launch

A coalition of 21 prominent financial institutions is set to launch a new entity aimed at creating and issuing stablecoins, signalling the growing integration of traditional finance into the digital currency space. The consortium, unveiled on Tuesday, comprises notable players such as Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG, and Fidelity Investments.

Initially, the group intends to focus on a US dollar stablecoin before broadening its offerings to include other G7 currencies, with a euro-denominated version likely following suit soon after. The stablecoin is designed to cater to a range of markets, including wholesale, institutional, and retail, with potential applications in cross-border payments and digital asset settlement.

The initiative aligns with the regulatory frameworks being developed in the United States, specifically the GENIUS Act, and the European Union's Markets in Crypto-Assets Regulation (MiCA). The venture expands upon an earlier announcement from October last year, when an initial group of 10 banks explored a 1:1 reserve-backed digital currency on public blockchains. Since then, the consortium has more than doubled in size, encompassing institutions from North America, Europe, East Asia, the Middle East, and Africa.

The emergence of stablecoins has seen significant growth in recent years, facilitated by regulatory clarity provided by the GENIUS Act and MiCA. In a related development, Singapore is exploring the possibility of permitting cross-border stablecoins under its regulatory regime, marking a shift from its previous stance of limiting such frameworks to domestic issuances.

The interest from institutions in stablecoins surged in early 2025, with a Fireblocks survey revealing that 90% of over 295 executives were using or planning to utilize these digital assets.

Major players in the financial sector have also been actively involved in the stablecoin sector. Societe Generale's crypto subsidiary has issued stablecoins in both euro and dollar denominations, while Fidelity has launched its US dollar-pegged FIDD stablecoin. Societe Generale's crypto arm has also introduced euro- and dollar-denominated stablecoins, and Fidelity recently unveiled its FIDD US dollar-denominated stablecoin.

Standard Chartered recently backed a Hong Kong dollar stablecoin venture, further underscoring the increasing institutional engagement in this digital asset space.