Twenty-one major banks are building a stablecoin. But the bigger story is not the token. It is who gets to control the financial infrastructure behind it.
The banks plan to establish a joint company in late 2026 and launch a U.S. dollar-denominated stablecoin in the first half of 2027. The initiative will initially focus on USD stablecoins before expanding into other Group of Seven (G7) currencies, with the euro given priority.
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They are not alone. A separate group of 37 financial institutions, Qivalis, is developing a euro-denominated stablecoin, while a consortium of more than 140 companies is developing its own Open USD stablecoin.
That overlap is telling. Traditional finance is no longer treating stablecoins as a side bet. Banks increasingly see them as infrastructure and want a direct role in it.
The 21-Bank Move
Twenty-one financial institutions, including Bank of America, Goldman Sachs, Citi, Wells Fargo, UBS, Deutsche Bank, Santander and MUFG, confirmed plans to form a joint company by late 2026 and launch a U.S. dollar stablecoin in the first half of 2027.
A euro version is next, with other G7 currencies to follow. The planned stablecoin is intended for wholesale, institutional and retail use cases.
The group says the token will target compliance with the U.S. GENIUS Act and European Union Markets in Crypto-Assets Regulation (MiCA).
The significance is not simply that another stablecoin is coming to market. The participating banks bring something existing issuers have had to build over time: regulated banking relationships, corporate clients, custody infrastructure, compliance capabilities and access to established payment networks.
That could give a bank-issued stablecoin a significant distribution advantage.
The Fight Moves Beyond the Stablecoin
The new initiative would put the banks directly against established dollar stablecoins such as USDT and USDC. But the bigger competition is happening around the stablecoin itself, as stablecoins are becoming a potential new layer of the financial system, and major institutions are positioning themselves before that layer becomes entrenched.
In Europe, Qivalis, a consortium of 37 European financial institutions, is already developing a regulated euro stablecoin.
A consortium of more than 140 companies is developing Open USD, a stablecoin project backed by companies across the payments, financial and technology sectors. Its founding members include Visa, Mastercard, Stripe, BlackRock, BNY, Standard Chartered, Google, Shopify and Ripple.
Payment networks are building around stablecoins rather than leaving the infrastructure to issuers.
Visa, which has supported USDC settlement since 2021, is expanding its blockchain support and infrastructure so banks and fintechs can use stablecoins through its network.
BlackRock is taking a different position, but is also focusing on the cash and U.S. Treasury assets that can back digital dollars.
In August 2026, it launched BRSRV, a tokenized vehicle investing in cash and short-term U.S. Treasuries that can also serve as a reserve asset for payment stablecoins. The product builds on BlackRock’s existing tokenization strategy, including BUIDL, its tokenized Treasury fund.
The result is an emerging division of the market. Tether and Circle have established leading positions in stablecoin issuance and liquidity. Visa is building payment rails. BlackRock is positioning itself in tokenized cash, Treasury and reserve infrastructure.
And now the major banks are moving to secure their own position.
The Real Battle Is the Infrastructure
This is why the 21-bank initiative matters beyond the launch of another stablecoin. The banks want a direct role in how digital money is issued, backed, settled and moved.
If stablecoins become a major part of global payments and financial markets, control of this infrastructure will determine where the economics and strategic power sit.
The competition is not just over which stablecoin wins, but who controls the infrastructure behind digital money.
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