Goldman, Citi and BofA Are Building Their Own Stablecoin

Goldman Sachs Group Inc.(GS, Financials) is teaming up with Bank of America and Citigroup on a significant push to integrate stablecoins deeper into traditional finance.A consortium of 21 financial institutions is planning to form a new firm that will issue a U.S. dollar-pegged stablecoin in the first half of 2027.Other members of the group include Wells Fargo, Deutsche Bank, UBS, Santander, Capital One and Fidelity Investments.The project has expanded considerably from its initial announcement in October 2025, which involved only 10 banks.Ultimately the group aims to introduce digital currencies connected to other G7 currencies, with a euro version among its goals. The move is a significant shift for Wall Street.For the most part, stablecoins have been the domain of crypto natives like Tether and Circle. Banks now appear more interested in competing than they do in watching those startups create payment networks around them.The reserve will back the planned token one-to-one and will run on public blockchains. This could make the project particularly useful for institutional transactions and cross-border payments.The next test comes in 2027, when investors will see if a stablecoin backed by some of the world's biggest institutions will gain major acceptance.