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      Major Banks Form Consortium to Launch USD-Denominated Stablecoin by 2027

      A consortium of 21 prominent financial institutions, including Bank of America, Citi, Goldman Sachs, Deutsche Bank, and UBS, has announced plans to launch a USD-denominated stablecoin aimed at wholesale and institutional markets. The new company is expected to be established in the second half of 2026, with the stablecoin's market debut targeted for the first half of 2027.

      The initiative began in October 2025 when a group of 10 global systemically important banks (G-SIBs) started exploring the feasibility of a bank-issued stablecoin. The consortium has since expanded to include 17 G-SIBs and a total of 18 banks, reflecting a significant commitment to the project. The stablecoin will focus on use cases such as wholesale, institutional, and retail payments, particularly for cross-border transactions and digital asset settlements.

      The timing of this initiative aligns with evolving regulatory frameworks in both the United States and Europe. The GENIUS Act in the U.S. aims to provide a federal framework for stablecoin regulation, while the EU's Markets in Crypto-Assets regulation (MiCA) is already imposing compliance requirements for digital asset issuers. The consortium's stablecoin is designed to adhere to bank-level governance and risk management standards from its inception, positioning it favorably in a competitive landscape where traditional banks are increasingly exploring blockchain technology.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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