Bank of America, Goldman Sachs, and Citi Join Global Banks Exploring New Stablecoin Initiative

A group of the world’s largest banks — including Bank of America, Goldman Sachs, Citi, and Deutsche Bank — is jointly exploring the creation of a reserve-backed stablecoin. The move could signal the beginning of a coordinated industry effort to modernize cross-border payments using blockchain technology.

• Major banks including BoA, Goldman Sachs, Citi, and BNP Paribas are exploring a joint stablecoin project.
• The initiative aims to create a 1:1 reserve-backed digital asset for public blockchains.
• Focused on G7 currencies, it seeks to ensure full regulatory compliance.
• The market is currently dominated by Tether and Circle, with $290B in USD-pegged supply.
• Banks are working with regulators in multiple markets as discussions progress.
• Industry analysts expect the stablecoin market to reach trillions in coming years.

Some of the world’s most powerful financial institutions are teaming up to explore the issuance of a bank-backed stablecoin, marking one of the strongest signals yet that traditional finance is embracing blockchain-based payment infrastructure.

In a joint statement released Friday, BNP Paribas, along with Bank of America, Goldman Sachs, Barclays, Deutsche Bank, Citi, MUFG Bank Ltd., TD Bank Group, and UBS, said they are “jointly exploring the issuance of a 1:1 reserve-backed form of digital money available on public blockchains.” The initiative is centered around G7 currencies such as the U.S. dollar, euro, and yen, and aims to establish a new standard for secure, compliant digital payments.

According to the statement, the goal of the project is to determine whether an “industry-wide offering could bring the benefits of digital assets and enhance competition across the financial market — while ensuring full compliance with regulatory requirements and best-practice risk management.”

The idea of a bank-issued stablecoin has been circulating for years, but new U.S. legislation offering regulatory clarity has reignited interest. In recent months, Bank of America and Citi have both expressed interest in launching digital payment assets as alternatives to existing stablecoins.

Currently, the stablecoin market is dominated by crypto-native players such as Tether (USDT) and Circle (USDC), which together account for over $290 billion in circulating supply. These USD-pegged tokens have become essential tools for global trade, remittances, and decentralized finance (DeFi) ecosystems.

Analysts predict that the stablecoin market could surpass trillions of dollars in the next few years as institutional adoption accelerates. A bank-led consortium could reshape this market by offering a more regulated, transparent alternative that aligns with international compliance frameworks.

The banks emphasized that they are “in contact with regulators and supervisors in each relevant market” and will continue to keep all parties informed as the project develops. While no launch timeline has been disclosed, the announcement alone reflects a growing recognition within traditional finance that blockchain settlement systems can reduce friction and improve transparency across global payment rails.

Final Thought

The entry of global banking giants into the stablecoin arena could mark a turning point for digital finance. If successful, a jointly issued, regulator-approved stablecoin might bridge the gap between traditional banking and decentralized finance — signaling a future where digital money becomes the new standard for global transactions.