21 leading global banks and investment funds have just announced plans to establish a joint venture company to issue a USD stablecoin, marking the largest coordinated step by traditional financial institutions to enter the digital asset market.
The group includes Bank of America, Citi, Goldman Sachs, UBS, Deutsche Bank, and 16 other organizations. The company is expected to be established in the second half of 2026, with the goal of launching the stablecoin in the first half of 2027, then expanding to other G7 currencies starting with the euro.
What Has Not Been Disclosed
The press release did not name the company, its owners, executives, the blockchain to be used, the custodian, or the reserve management entity. This is almost a replica of the October 2025 announcement, when the first 10 banks declared they were exploring the idea, but this time with more specific timelines and a longer list of members.
Eight of the original 10 banks are participating: Banco Santander, Bank of America, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank Group, and UBS. Barclays and BNP Paribas are absent. Thirteen new organizations have joined, including Capital One, Fidelity Investments, PNC Financial Services, Wells Fargo, BBVA, Commerzbank, Credit Agricole, Lloyds Banking Group, Rabobank, Standard Bank, and a company from Abu Dhabi.
Notably, Fidelity and WisdomTree are not banks. Both have already operated tokenized money market funds. WisdomTree was previously approved by the SEC for 24/7 fund trading in February.
The Stablecoin Market Is Fiercely Competitive
This joint venture will enter a market where two competitors hold up to 80% of the market share. The total stablecoin supply currently stands at $310.4 billion, with Tether (USDT) accounting for $183.3 billion (59%) and Circle (USDC) for $73.8 billion (24%). The total supply has increased by 9.9% compared to a year ago but has slightly decreased from its June peak of $317.4 billion.
Six of the 21 organizations have already committed to participating in a rival design: The Clearing House’s tokenized deposit network, also aiming for a launch in the first half of 2027. JPMorgan, the largest bank in the US and a pioneer in tokenized deposits with JPMD, is not on the list of 21 organizations.
Other stablecoin joint ventures are also emerging. Open USD, with 140 members including Visa, Mastercard, BlackRock, Stripe, and Coinbase, was launched in June. SoFiUSD has reached $150 million. Paxos’s USDG stands at $3.2 billion. PayPal’s PYUSD has reached $2.8 billion.
Regulatory Framework Still Incomplete
The launch window in the first half of 2027 coincides with when the GENIUS Act is expected to take effect, specifically 120 days after federal agencies issue final regulations or January 18, 2027, whichever comes first. However, no final regulations have been issued yet. The OCC made a proposal in February, the FDIC in April, and the one-year deadline to establish the regulatory framework passed in July without completion.
Circle’s stock fell 6.35% on the day of the announcement, to $89.48, equivalent to a market capitalization of approximately $22.7 billion. The stablecoin market did not experience significant price fluctuations.