Joint Stablecoin Initiative by 21 Global Financial Institutions
Twenty-one leading global financial institutions have decided to establish a new joint venture, subject to regulatory approvals, to issue stablecoins.
Twenty-seven major financial institutions from around the world have announced their decision to form a joint venture to support and manage the issuance of stablecoins. Subject to regulatory approval processes, this new initiative aims to initially focus on supplying a stablecoin pegged to the US dollar.
Decision to Establish a Joint Venture
Twenty-one financial institutions operating globally have come together to establish a joint company to support stablecoin issuance. In a joint statement, it was stated that the establishment procedures of the new company are subject to regulatory approvals and its name will be announced in the coming period.
US Dollar and G7 Currencies Target
It was reported that the new company, planned to operate on a global scale, will initially focus on supplying a stablecoin pegged to the US dollar. Long-term plans include the issuance of stablecoins pegged to the euro and other G7 currencies.
Secure Solution and Use Cases
It was stated that the initiative will leverage the expertise of participating institutions to offer a secure solution combining bank-grade compliance, robust governance, distribution, and enterprise risk management. The product is envisioned to be utilized in wholesale, institutional, and retail markets, including cross-border payments and digital asset settlements.
Launch Timeline
It was reported that the stablecoin solution developed by the group of financial institutions is planned to be launched in the first half of 2027.
Financial Institutions Participating in the Project
A total of 21 financial institutions from North America, Europe, East Asia, the Middle East, and Africa are participating in the project. Participating institutions include Bank of America, Capital One, Citi, Fidelity Investments, Goldman Sachs, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, WisdomTree, Banco Santander, BBVA, Commerzbank, Credit Agricole, Deutsche Bank, Lloyds Banking Group, Coöperatieve Rabobank U.A., UBS, MUFG Bank, Sirius International Holding, and Standard Bank.