# Twenty-One Banks Including Goldman Sachs, Citi and UBS Will Form a Company to Issue a Dollar Stablecoin

The group plans to incorporate late this year and launch the token in the first half of 2027, entering a market where Tether and Circle already account for roughly 83 percent of the 310 billion dollars in circulation.

- Published: 2026-09-03T05:55:38.226Z
- Canonical: https://polylog.news/crypto/2026-09-03/twenty-one-banks-including-goldman-sachs-citi-and-ubs-will-f
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [Polylog editors](https://polylog.news), [CryptoSlate](https://cryptoslate.com/how-stablecoins-are-quietly-becoming-the-feds-debt-buyer-of-last-resort/)

Twenty-one financial institutions have agreed to create a joint company to issue a dollar-denominated stablecoin, with the token targeted for the first half of 2027. The list, [reported across crypto media and confirmed in outlet after outlet](https://crypto.news/bank-of-america-citi-join-21-firm-stablecoin-plan/), includes Goldman Sachs, Bank of America, Citi, Wells Fargo, Capital One, PNC, Scotiabank, TD Bank Group, Fidelity Investments and WisdomTree in North America, Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds, Rabobank and UBS in Europe, MUFG Bank in Japan, Sirius International Holding in the United Arab Emirates and Standard Bank in South Africa. A [French-language summary circulating on Telegram](https://t.me/GokuCryptoNews/20524) said the venture would move to a euro version after the dollar token.

The stated use is cross-border payment and settlement for wholesale, institutional and retail clients. The participants say the design will comply with the United States GENIUS Act and the European Union's Markets in Crypto-Assets Regulation (MiCA), which is the structure's central purpose. A bank consortium does not need to compete on yield or on distribution. It needs to be the issuer that a compliance department can approve.

The competitive gap is large. Total stablecoin supply stands at 310.16 billion dollars, with Tether at 183.29 billion and USD Coin at 73.86 billion, according to DeFiLlama. The consortium is arriving eighteen months after competitors with established liquidity, and liquidity, not branding, determines which token gets used.

The reserve mechanism is the part that matters beyond crypto markets. As CryptoSlate argues, dollar tokens [expand private demand for Treasury bills](https://cryptoslate.com/how-stablecoins-are-quietly-becoming-the-feds-debt-buyer-of-last-resort/) without any central bank deciding to hold them. Bank-issued stablecoins route that same demand through institutions that already hold reserve accounts.

## What this means

If the consortium succeeds, deposit balances that currently sit on bank ledgers move into a token backed by short-dated Treasuries, which raises private demand for Treasury bills and changes where funding sits inside the banking system. The banks gain by capturing the float and the settlement fees they currently lose to Tether and Circle. The losers, if the plan works, are the incumbent issuers, whose main defense is that existing liquidity does not shift easily and that eighteen months is a long head start to give up. Two distinct outcomes are possible: either regulated corporate treasurers shift settlement to the bank token and Tether's share erodes at the institutional margin, or the consortium token becomes a closed interbank instrument that never touches public blockchain liquidity, leaving the existing market untouched.

## What to watch

- Whether the venture commits to issuing on public blockchains or on a permissioned ledger, which decides if the token competes with existing stablecoins at all.
- Tether and Circle's supply figures over the next two quarters, the cleanest measure of whether institutional users are waiting for the bank product.
- Whether the euro version arrives on the schedule described, which would test how much MiCA compliance actually costs a multi-bank issuer.