21 major banks plan 2027 US dollar stablecoin to compete in $1.9T market

Twenty-one major financial institutions, including Bank of America, Citi, Goldman Sachs, and Wells Fargo, have committed to launching a US dollar-backed stablecoin in the first half of 2027. A stablecoin is a type of digital currency designed to hold a steady value, typically tied to a traditional asset like the US dollar.

The group plans to establish a company in the second half of 2026 to issue the stablecoin, which will comply with the US GENIUS Act and the EU’s MiCA regulations. The effort began in October 2025 with 10 banks and has since expanded to 21 institutions across North America, Europe, Asia, Africa, and the Middle East.

Key numbers behind the move

• Standard Chartered estimates stablecoins could pull $500 billion from US bank deposits by the end of 2028.
• Citi projects stablecoin issuance could reach $1.9 trillion by 2030, with a potential bull case of $4 trillion.
• The current stablecoin market is valued at about $303.7 billion, with Tether’s USDT holding over 60% of the market.

Why banks are entering the stablecoin market

Banks traditionally earn money by lending out deposits and profiting from the difference between what they pay depositors and what they earn on loans. Stablecoins, which hold reserves in cash, bank balances, and short-term government securities, compete for the same dollars. When money moves from a bank deposit to a stablecoin, the bank loses control of the customer relationship and the economic benefits tied to those funds.

By issuing their own stablecoin, banks aim to retain parts of that relationship, including payment processing, compliance, and reserve management, even if it means reducing their traditional deposit base.

What the consortium plans to do

The stablecoin will target wholesale and institutional activity, cross-border payments, digital-asset settlement, and retail markets where it can provide clear benefits to clients. The group is positioning itself to capture a share of the projected growth in stablecoin issuance and transaction volume, which Citi estimates could reach $100 trillion to $200 trillion annually by 2030.

The banks also expect multiple forms of digital money—including stablecoins, tokenized deposits, and central bank digital currencies—to coexist in the future.

What is still unclear

The success of the bank-backed stablecoin depends on achieving sufficient liquidity, exchange listings, wallet support, and real user demand to compete with established stablecoins like USDT and USDC.

Sources

• CryptoSlate