Goldman Sachs, BofA and 19 Other Banks Plan U.S. Dollar Stablecoin Launch

Twenty-one major financial institutions, including Goldman Sachs, Bank of America, and Citi, are set to establish a company to issue a U.S. dollar stablecoin, with formation planned for the second half of 2026, pending closing conditions. This stablecoin will be a private liability of the consortium, backed by reserves held by the banks, distinguishing it from a central bank digital currency (CBDC). The initiative follows a January 2025 executive order by President Donald Trump banning federal agencies from developing CBDCs while supporting private dollar-pegged stablecoins. The consortium includes banks from North America, Europe, East Asia, the Middle East, and Africa, aiming for the token's use in wholesale, institutional, and retail markets, starting with cross-border payments and digital asset settlements. A euro-denominated version is planned after the dollar coin. The venture aims to comply with the U.S. GENIUS Act and the EU's MiCA framework. This effort builds on previous discussions among JPMorgan, Bank of America, Citi, and Wells Fargo since 2025, although JPMorgan is not part of the current group. The Boston Consulting Group and Brunswick Group are advising the consortium, which targets a market launch by the first half of 2027.

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