A consortium of leading global banks, including Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), Deutsche Bank AG (NYSE:DB), Goldman Sachs Group Inc (NYSE:GS, ETR:GOS), UBS Group AG (NYSE:UBS), Santander, Barclays, BNP Paribas, MUFG, and TD Bank Group, is exploring the potential issuance of stablecoins pegged 1:1 to G7 currencies, Reuters reported.
The initiative, currently in its early stages, aims to investigate the creation of blockchain-based digital assets linked to traditional fiat currencies.
According to the consortium, the project seeks to assess whether a shared industry-wide stablecoin offering could deliver the benefits of digital assets, foster greater competition in the market, and adhere to regulatory standards and best-practice risk management.
The exploration reflects a growing interest among banks in integrating blockchain technology and stablecoins into mainstream finance.
While the stablecoin market is currently dominated by US dollar-backed tokens such as Tether, participating banks are examining the potential for similar assets denominated in other G7 currencies.
Reuters wrote that analysts believe this aligns with broader industry trends in which financial institutions are evaluating stablecoins as possible payment and settlement tools.
In their statement, the banks reportedly highlighted the importance of regulatory compliance and robust risk management as central to the project, emphasizing that the initiative is intended to build trust and stability in any potential digital currency infrastructure.
France’s Societe Generale was cited as a pioneer in the issuance of a dollar-backed stablecoin earlier this year, though adoption has remained limited.
Separately, a European consortium is reportedly developing a euro-denominated stablecoin.