Bank of America and Citibank join 21 companies 'stablecoin program

21 financial institutions have promised to jointly establish a stablecoin company, with the goal of launching

21 financial institutions including Bank of America, Citigroup, and Goldman Sachs promised on September 1 that they will establish a stablecoin company in the second half of 2026, provided that relevant delivery conditions are met.

Project Overview

21 financial institutions have committed to establishing a stablecoin company in the second half of 2026. The alliance aims to launch a U.S. dollar stablecoin in the first half of 2027, subject to meeting relevant delivery conditions. stablecoins for other G7 currencies may be launched in the future, of which the euro stablecoin is listed as the priority expansion direction. The token will support wholesale, institutional and retail payments, and digital asset settlement services. The program will comply with applicable GENIUS Act and the Cryptographic Asset Markets Regulation (MiCA) requirements before launching global operations.

The as-yet-named company plans to issue a dollar-denominated stablecoin in the first half of 2027. The group said that it may subsequently launch tokens pegged to other G7 currencies, with euro stablecoins listed as the preferred expansion direction. The institutions plan to use the token in wholesale, institutional and retail markets, with proposed uses including cross-border payments and settlement of digital asset transactions.

The announcement remains a development plan, not a completed project. The group has not disclosed the company name, token name, blockchain network, reserve custodian, governance structure or final redemption terms.

stablecoin group covers four continents

The alliance is made up of banks, asset management companies and other financial institutions from North America, Europe, East Asia, the Middle East and Africa. North American participants include Bank of America, Capital One, Citigroup, Fidelity Investments, Goldman Sachs, PNC Financial Services, Scotiabank, TD Bank of Toronto, Wells Fargo and Smart Tree. European members include Banque Santander, Bank BBVA, Commerzbank, Credit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank and UBS. Mitsubishi UFJ Financial Group represents East Asia, while Sirius International Holdings and Standard Bank represent the Middle East and Africa respectively.

The group said the project will combine participants 'distribution networks with the bank's compliance, governance and risk management systems. These are the company's statements about planned products that have not yet entered the market. Mitsubishi UFJ Financial Group confirmed its participation in a separate statement. BBVA also issued an alliance announcement through its corporate news service. There has been no subsequent disclosure to clarify the name of the operating company or assign specific roles to individual members.

Dollar stablecoin plan stems from research by ten banks

The project stems from an announcement in October 2025 when 10 banks said they were studying a form of digital currency that could be available on a public blockchain backed by a 1:1 reserve. The latest announcement expands the initial research team to 21 institutions and advances the project from the exploration phase to the establishment of a specialized company. However, the alliance has not yet determined which public blockchains it will support, nor has it disclosed whether users can directly hold and transfer tokens, or whether access depends on participating banks and approved service providers.

The proposed user base for this product is also very broad. Wholesale purposes may include transfers between banks or between large businesses. Institutional use may involve the settlement of tokenized securities and other digital assets. Retail apps may include payments, but the alliance has not yet released a consumer distribution plan. Tokens in the plan will enter a market currently dominated by established issuers such as Tether and Circle. These banks may compete through their existing customer relationships, compliance systems and payment infrastructure access channels. These potential advantages remain to be verified before the company releases its operating model and launches tokens.

Traditional banks are also considering other independent options. JPMorgan Chase has had early discussions about possible stablecoins, but the bank said it has no aggressive launch plans and will evaluate customer needs and the regulatory environment.

GENIUS Act rules not yet completed before introduction

The alliance said its U.S. dollar stablecoins "plan" to comply with the U.S. GENIUS Act when applicable. U.S. President Donald Trump signed the bill into law on July 18, 2025, establishing a federal framework for issuers of payment stablecoins. The law sets licensing and regulatory requirements, requires stablecoins to be backed by qualified liquid reserves on a 1:1 ratio, provides redemption protection, and requires regular disclosure of reserve information. Issuers are not allowed to pay interest or income solely for holding insured payment stablecoins.

Multiple implementing regulations have not been completed after federal agencies missed a July 18, 2026 rulemaking deadline. The Office of the Comptroller of the Currency has imposed reporting requirements, including weekly confidential reports and quarterly financial reports for issuers under its supervision. The Office of the Comptroller of the Currency aims to issue final rules by November 2026. The timing of the regulation could put the federal framework into effect when the banking union prepares to launch products in 2027. The timetable gives the company time to incorporate final reserve, capital, redemption, custody and compliance requirements into its products, and also creates uncertainty as multiple details may change before regulators complete their work.

The U.S. Treasury Department is developing separate rules for state regulatory recognition and foreign stablecoin issuers. In related reports, the Treasury Department sought public feedback on licensing standards and the interaction between federal and state regulations.

Euro tokens will face MiCA requirements

The alliance also said it "plans" to comply with the EU's Crypto Asset Markets Regulation where applicable. MiCA already provides a regulatory framework for stablecoins issued in the European Union. Tokens pegged to a single official currency, such as the euro, typically fall into MiCA's electronic currency token category. Issuers face authorization, reserve, disclosure and redemption requirements, and may face additional regulation if the token meets regulatory importance thresholds. The alliance did not say which legal entity would issue its planned euro tokens or where the issuer would obtain the license. These choices will determine the relevant regulatory authority and the obligations assigned to participating agencies.

Operations in the United States and the European Union also require coordination between regulators. The Financial Stability Board recommends comprehensive cross-border regulation and information sharing of the global stablecoin arrangement, as its functions may cover banking, payments and securities sectors.