Major banks to launch stablecoin venture in 2027
A consortium of global banks, including Citi and Lloyds, plans to form a company this year to issue a USD stablecoin by 2027, aiming to facilitate
A consortium of the world's largest banks is preparing to establish a new company dedicated to issuing stablecoins before the end of this year. The group includes Citi, Lloyds Banking Group, and Japan's MUFG Bank, among others.
The initiative builds on exploratory work begun in October 2025 by a group of ten banks, including Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank, and UBS. That group was investigating the issuance of a form of digital money backed one-to-one by reserves. The current consortium has seen some members depart and new ones join.
Consortium members
The founding members from the 2025 exploration phase have shifted. Barclays and BNP Paribas are no longer involved in the venture. However, a significant number of new financial institutions have joined the project. The expanded list of partners now includes BBVA, Capital One, Commerzbank, Crédit Agricole, Fidelity Investments, Lloyds Banking Group, PNC Financial Services, Rabobank, Scotiabank, Sirius International, Standard Bank, Wells Fargo, and WisdomTree.
Product roadmap and ambitions
The as-yet-unnamed joint venture intends to operate on a global scale. Its initial product will be a US dollar-denominated stablecoin, which the partners aim to bring to market in the first half of 2027. The longer-term strategic goal is to expand issuance into stablecoins denominated in other major currencies. A euro-denominated offering is described as a priority for this subsequent phase of expansion.
Targeted use cases
The banking partners envision using these stablecoins for a wide array of applications across wholesale, institutional, and retail markets. The core proposition is to use a trusted form of digital money to achieve client benefits. Specific use cases highlighted include improving the efficiency of cross-border payments and help settlements for digital assets. The partners believe these stablecoins can provide a stable payment asset that is available on public blockchain networks.
The formation of this company represents a significant coordinated move by traditional banking institutions into the digital currency space. Their focus on a reserve-backed model aims to provide stability and trust for institutional and retail clients handling digital finance.
