“Bank version of USDT” is here! Traditional financial giants collectively “defected”, Goldman Sachs led 21 institutions into the stablecoin circuit

The Zhitong Finance App learned that a group of 21 financial institutions including Goldman Sachs, Bank of America, Citibank, and Deutsche Bank said on Tuesday that it plans to establish a company this year and issue a cryptocurrency linked to the US dollar in the first half of 2027.

The group was first announced in October 2025, when only 10 banks participated. The group said in a statement that its goals also include expanding to stablecoins linked to other G7 currencies, with the euro as the preferred choice.

Stablecoins are used to transfer funds globally in the form of cryptocurrencies, and are mainly used for cryptocurrency transactions. However, the rebound in cryptocurrency prices in 2024 and US President Trump's support for the industry triggered a revival of interest in using blockchain technology in mainstream financial systems.

The group will compete against another coalition of 37 financial institutions, which formed a company called Qivalis and said it plans to launch a stablecoin pegged to the euro later this year. Some institutions, including Spain's second-largest bank (BBVA), are members of both groups at the same time. World Liberty Financial, the cryptocurrency business of President Trump's family, has also issued its own stablecoin.

Despite this, there are currently few signs that the market is in demand for bank-issued stablecoins.

The stablecoin market is currently dominated by Tether, headquartered in El Salvador, which claims to have issued more than $180 billion worth of dollar-linked tokens and made billions of dollars in profits by investing reserves in assets, including US Treasury bonds.

Société Générale, which has not joined any of these alliances, became the first major bank to issue a USD-backed stablecoin through its digital asset subsidiary last year. According to data from its website, the token has yet to be widely adopted, with a circulation of just $12.5 million.

European Central Bank President Christine Lagarde has previously issued a warning that stablecoins issued by private institutions pose a risk to monetary policy and financial stability.