After years of stablecoins being primarily led by crypto-native companies, a group of major banks and financial institutions is preparing to bring stablecoins deeper into the traditional financial system. A group of 21 international financial institutions announced on September 1 that it plans to establish a new stablecoin enterprise in the second half of 2026, to issue a USD-pegged stablecoin in the first half of 2027.
This plan places global banks in a market currently dominated by Tether and Circle, while testing the role of stablecoins in regulated payments and transaction settlement.
Global Banks Prepare for a 2027 Stablecoin Launch
A new company is expected to be established in the second half of 2026 to support the stablecoin’s issuance, marking a more concrete step by traditional finance after years of major banks primarily experimenting with tokenized deposits, blockchain settlement, or internal payment networks.
The group of 21 participating institutions includes Bank of America, Capital One, Citi, Fidelity Investments, Goldman Sachs, PNC Financial Services, Scotiabank, TD Bank Group, Wells Fargo, WisdomTree, Banco Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds Banking Group, Rabobank, UBS, MUFG Bank, Sirius International Holding, and Standard Bank.
The company has not yet announced its name, nor the token name, the blockchain to be used, the reserve structure, or the redemption terms. The press release noted that the establishment of the enterprise remains subject to necessary closing conditions.
The First Token Will Track the Dollar
The first planned product is a USD-pegged stablecoin scheduled to launch in the first half of 2027. Prioritizing the U.S. dollar reflects its overwhelming role in the stablecoin market, from liquidity and trading volume to its function as a pricing asset in the crypto market.
The release stated that the initiative could expand to other G7 currencies in the future, with the euro being one of the priority directions. If deployed in that direction, the project will not stop at a single USD token but could become a multi-currency stablecoin infrastructure for major markets.
This approach shows that the banking group is opting for a more cautious path, starting with the currency that has the highest demand for stablecoins before expanding into other jurisdictions and currencies.
Banks See a Role Beyond Crypto Trading
The group of 21 institutions stated that the new stablecoin is designed for wholesale, institutional, and retail payments, including cross-border payments and digital asset settlement. These are areas where banks already have existing customers, compliance infrastructure, and corporate relationships.
Although stablecoins are often seen as a faster and cheaper payment tool, most current demand still comes from crypto trading, capital movement between exchanges, DeFi, and short-term store of value within the digital asset ecosystem.
A study by the Kansas City Fed published in 2026 estimated that payments accounted for only about 0.7% of categorized stablecoin activity in the study sample, while trading assets accounted for nearly 48.8%. This gap shows that stablecoins have not yet become a mainstream payment tool, despite the sector’s strong growth over the past few years.
Stablecoin usage by function. Source: Federal Reserve Bank of Kansas City.
For banks, the opportunity lies in integrating stablecoins into financial services that already have real money flows, such as international payments, treasury, custody, or settlement. If successful, the project could take a different direction from stablecoins that primarily serve exchange trading.
A Market Still Dominated by Tether and Circle
The stablecoin from the 21 institutions will enter a market already heavily concentrated around two major players. According to DefiLlama, total stablecoin market capitalization in early September 2026 reached approximately $310.1 billion, with Tether’s USDT accounting for about $184.2 billion and Circle’s USDC reaching around $73.3 billion. Together, these two tokens hold roughly 83% of the market.
USDT remains the most liquid stablecoin in crypto trading, particularly in markets outside the US. USDC holds a stronger position among compliance-focused users, institutions, and use cases tied to US infrastructure. PayPal’s PYUSD, a USD stablecoin from a major payments company, has a market cap of around $2.8 billion, illustrating the massive gap between newer products and the two leading stablecoins.
The new stablecoin will need more than just a clear legal structure to compete with tokens that already have established liquidity and wide usage networks.
What Could Slow the 2027 Rollout
In the US, the GENIUS Act was signed into law on July 18, 2025, creating a federal framework for payment stablecoins ahead of the project’s planned launch timeline. In Europe, MiCA has established requirements for asset-referenced tokens and e-money tokens, including licensing, reserves, and issuer supervision.
The group of 21 institutions stated that the initiative will be built to comply with regulatory frameworks such as the GENIUS Act and MiCA where applicable. However, several core details remain unannounced, including the blockchain used, reserve structure, redemption mechanism, and initial distribution scope.
These details will directly impact the rollout timeline and subsequent adoption. A stablecoin backed by major banks may build initial trust, but liquidity, redemption rights, and the ability to integrate into existing financial services will be the decisive factors for scale post-launch.
If launched on schedule in the first half of 2027, this project will be a major test for the role of banks in the tokenized money market. The outcome will depend on whether this stablecoin can move beyond the pilot stage and be used in real-world payments or settlement.
