TL;DR
- Ten major international banks are evaluating the issuance of a stablecoin backed 1:1 by reserves and tied to G7 currencies.
- The project aims to establish an industry standard for stable, competitive digital payments under strict regulatory oversight.
- The banks are analyzing how to integrate digital assets into the traditional financial system.
A group of leading international banks — including Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank, and UBS — is jointly exploring the issuance of a 1:1 reserve-backed stablecoin, focused on G7 currencies and available on public blockchains.
Project Objectives
The initiative seeks to determine whether an industry-wide standard could bring the benefits of digital assets, enhance market competition, and ensure full compliance with regulatory requirements and best-practice risk management.
According to the participating banks, the project is in an exploratory phase and remains in constant communication with regulators and supervisors in each relevant market, committing to keep authorities informed as the initiative progresses. The goal is to establish a framework that allows traditional financial institutions to offer a secure and transparent digital asset without compromising stability or regulatory standards. As banks move toward digital asset issuance, solutions such as the Plasma blockchain platform are emerging to provide the core infrastructure for regulated and transparent stablecoin operations.
The idea of issuing an institutional stablecoin arises in response to U.S. dollar–pegged digital currencies that currently dominate the market. The total supply of dollar-backed stablecoins now exceeds $290 billion and continues to rise.
Both companies and industry analysts predict that the stablecoin market could reach trillions of dollars in the coming years, driven by full-scale adoption among financial institutions, corporations, and global payment platforms. The banks believe that a jointly issued stablecoin could deliver efficient, competitive, and liquid digital payment services while adhering to international regulatory and risk management standards.
Banks Aim for a Share of the Market Currently Dominated by Circle and Tether
Although traditional banks have shown growing interest in this type of project, the market remains dominated by crypto-native issuers such as Circle and Tether. However, the regulatory clarity now present in the United States and other major jurisdictions has opened the door for established institutions to issue digital assets under well-defined legal frameworks — strengthening confidence and stability for both clients and investors.
The banks aim to explore how digital assets can be integrated into traditional financial systems and evolve into reliable, universal payment tools. Their collaboration could lead to the creation of a standardized, secure, and regulated product that serves as a reference point for future financial sector initiatives. The proposal combines institutional expertise, financial backing, and blockchain technology to lay the foundation for a regulated, transparent, and global stablecoin
