Goldman Sachs, Citi and 19 other banks plan joint dollar stablecoin for 2027

A consortium of 21 major financial institutions, including Goldman Sachs, Citi, and Bank of America, has announced plans to form a company in late 2026 to launch a joint, dollar-backed stablecoin in the first half of 2027. The venture aims to expand into euro-denominated tokens to compete in a $303 billion market currently dominated by non-bank issuers like Tether. Following the announcement on September 1, 2026, shares of rival stablecoin issuer Circle fell by approximately 6%.

Bank consortium stablecoin venture

• ▪The 21-member consortium includes Goldman Sachs, Bank of America, Citi, Deutsche Bank, Santander, MUFG Bank, TD Bank, UBS, Wells Fargo, Fidelity Investments, and WisdomTree
• ▪A group of 21 financial institutions plans to establish an unnamed company in the second half of 2026 to issue a dollar-backed stablecoin in the first half of 2027
• ▪The bank consortium plans to expand its stablecoin offerings into other G7 currencies, with a euro-denominated stablecoin designated as its next priority
• ▪The stablecoin venture grew from an October 2025 initiative involving 10 global systemically important banks, of which eight remain in the current 21-member group

Stablecoin market dynamics

• ▪Tether dominates the stablecoin market, with its USDT token accounting for 60% of the total market share and over $180 billion in circulation
• ▪The global stablecoin market capitalization rose from approximately $200 billion at the beginning of 2025 to around $303 billion by September 2026
• ▪Societe Generale became the first major bank to issue a dollar-backed stablecoin in 2025, which has reached only $12.5 million in circulation

Regulatory compliance framework

• ▪The bank consortium intends to design its stablecoin to comply with the United States GENIUS Act and the European Union Markets in Crypto-Assets framework
• ▪European Central Bank President Christine Lagarde has warned that privately issued stablecoins pose risks for monetary policy and financial stability

Competition with existing stablecoin issuers

• ▪The 21-bank consortium will compete with Qivalis, a separate consortium of 37 financial institutions planning to launch a euro-pegged stablecoin in late 2026
• ▪Fidelity Investments and WisdomTree, which already run their own stablecoins, joined the consortium, indicating that individual bank tokens struggle to compete with non-bank issuers

Circle stock market reaction

• ▪Shares of Circle, the issuer of the USDC stablecoin, fell approximately 6% on September 1, 2026, following the bank consortium's announcement
• ▪Circle's stock previously declined in June 2026 after a group of 140 companies, including Stripe and BlackRock, announced plans to launch the rival Open USD stablecoin

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