Major U.S. Banks Back New Stablecoin Initiative
Six major U.S. banks—Bank of America, Citi, Capital One, Goldman Sachs, PNC, and Wells Fargo—are among the 21 financial institutions backing a new stablecoin initiative set to launch by year-end 2026. The project aims to issue a dollar-denominated stablecoin with plans for expansion into other G7 currencies like the euro in the future. The solution is expected to go live in early 2027 and will focus on providing bank-grade compliance, governance, and risk management across wholesale, institutional, and retail markets. The initiative aligns with regulatory developments such as the Genius Act, which becomes effective January 18, 2027. The move reflects growing concern among banks about stablecoins potentially siphoning up to $6 trillion in commercial deposits. While some firms like Visa, Mastercard, and Coinbase support a separate project called Open USD, there is minimal overlap between the two initiatives. JPMorgan Chase has not joined either group but remains active in digital assets through its JPM Coin tokenized deposit product.
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Topics: banks digital assets regulation stablecoins