Banks Move to Issue Their Own Stablecoins Amid Rapid Market Growth

Stablecoin supply has exploded from $27 billion at the end of 2020 to more than $300 billion today. A large share of that growth now occurs outside traditional exchange order books, with cross‑border flows into the United States approaching $127 billion per month and businesses settling $226 billion in B2B payments in stablecoins last year.

Bank Consortium Announces Stablecoin Plans

On September 1, 2026, twenty‑one financial institutions—including Bank of America, Citi, Goldman Sachs, Deutsche Bank and UBS—announced a joint effort to create a stablecoin company. The group aims to launch a dollar‑denominated token in the first half of 2027, followed by a euro version, and says the product will comply with the GENIUS Act and the EU MiCA framework.

Why Banks Are Entering the Space

Industry leaders cite regulatory clarity from the GENIUS Act and the rapid rise in stablecoin transaction volume (over $28 trillion in Q1 2026) as key drivers. The act defines stablecoins and sets a federal perimeter for issuance, removing previous uncertainty.

Analysts warn that stablecoins are attracting corporate treasury liquidity away from traditional correspondent banking networks. In 2025, global B2B stablecoin payments grew 733 % year‑on‑year to $226 billion, and projections suggest up to $1 trillion of emerging‑market deposits could shift to stablecoins over the next three years.

Potential Benefits and Risks for Corporate Users

Bank‑issued stablecoins could keep corporate clients within the bank’s ecosystem, preserving fee revenue and providing a faster settlement layer. However, such tokens are not insured by the FDIC, do not earn yield under current rules, and can be frozen by the issuer.

Case studies show cost savings on cross‑border payments. A $100,000 transaction from an African dealer to a Japanese exporter can drop from 3‑5 % total cost on a traditional wire to under 1 % using stablecoins, while settlement time shrinks from days to minutes.

Interoperability Challenges

Experts note that a stablecoin that only works within a single bank’s network offers limited value. Interoperability across banks, public blockchains and other payment providers is essential for broader adoption. Regulatory fragmentation and commercial willingness to hold rival banks’ tokens remain obstacles.

Independent Stablecoins Remain Dominant

Independent issuers such as USDT (≈$183 billion market cap), USDC, and the upcoming Open USD continue to command the largest liquidity and network effects. Circle’s Arc network, launched in September 2026, already hosts validators like Visa and BlackRock, while SoFiUSD is available to 15 million app users.

Bank‑backed tokens may find niche use within institutional settlement corridors, but their success will depend on achieving the same level of acceptance and frictionless conversion that independent stablecoins have built over a decade.