Major Banks Form Consortium to Launch a USD‑Backed Stablecoin by 2027

Twenty‑one banks across North America, Europe, Asia, Africa and the Middle East announced a joint effort to develop a U.S. dollar‑denominated stablecoin. The consortium plans to form a company in the second half of 2026 and issue the token in the first half of 2027, complying with the GENIUS Act and the EU’s MiCA framework.

Why banks are moving into stablecoins

Standard Chartered warned that stablecoins could pull roughly $500 billion from U.S. bank deposits by the end of 2028, putting pressure on regional banks that rely on deposit‑loan spreads. By creating a bank‑backed stablecoin, institutions hope to retain customer relationships, settlement infrastructure and a share of reserve economics that would otherwise shift to crypto‑native issuers.

Market size and growth projections

DefiLlama reports total stablecoin market capitalization at about $303.7 billion, with Tether (USDT) accounting for more than 60 %. Citi’s 2030 research projects stablecoin issuance could reach $1.9 trillion in a base case and $4 trillion in a bull case, implying $1.6‑$3.7 trillion of new issuance beyond current levels. Corresponding transaction volumes could rise from $100 trillion to $200 trillion annually.

Potential outcomes

• Bull case: Bank‑issued stablecoins capture significant transaction flow, preserving deposit relationships while generating settlement and custody fees.
• Base case: Tokens find niche use in wholesale, cross‑border and institutional settlement without displacing major existing stablecoins.
• Bear case: The consortium’s token meets regulatory standards but fails to achieve liquidity or market adoption, limiting impact on bank funding.

Regulatory backdrop

The GENIUS Act, enacted in July 2025, will take effect either 18 months after enactment (January 18 2027) or 120 days after final rulemaking. The consortium’s 2027 launch aligns with this timeline, providing a clear compliance path for banks entering the stablecoin space.

Challenges ahead

Bank‑backed tokens must build distribution networks, secondary‑market liquidity, exchange listings and merchant acceptance—areas where established issuers like Tether and Circle have years of experience. Early examples, such as Societe Generale’s dollar‑backed token with $12.5 million in circulation, illustrate the difficulty of scaling token usage.