Several leading financial institutions, such as Bank of America, have begun early discussions on the potential creation of blockchain-based tokens linked to G7 currencies.
Other institutions include Citi, Deutsche Bank, Goldman Sachs and UBS. The initiative aims to assess the feasibility of issuing digital assets pegged 1:1 to traditional currencies, often referred to as stablecoins.
A joint statement from the participating banks said the exploration would focus on determining whether such a project could offer operational efficiency, encourage competition, and align with existing financial regulations. Representatives from the group indicated that compliance and proper risk management would be central to any proposed framework.
Growing institutional interest in blockchain applications
The move comes in the context of renewed interest in stablecoins among established financial institutions. Over recent months, rising cryptocurrency prices and the general shift toward digital asset integration in mainstream finance have prompted several banks to revisit blockchain applications.
According to MSN citing CoinGecko data, the global stablecoin market is currently dominated by Tether, a company registered in El Salvador, which accounts for approximately USD 179 billion of the USD 310 billion in circulation. Despite this dominance, traditional banks appear increasingly interested in exploring alternatives that operate under regulated frameworks.
The participating banks include Santander, Barclays, BNP Paribas, MUFG Bank, TD Bank Group and UBS, alongside those leading the discussions. While the initiative remains at a conceptual stage, it reflects a wider industry effort to evaluate blockchain’s role in cross-border payments and settlement systems.
Earlier this year, France’s Société Générale issued a dollar-backed stablecoin through its digital asset arm, though adoption has been limited to about USD 30 million in circulation. Meanwhile, a separate consortium of nine European banks, including ING and UniCredit, recently announced plans for a euro-pegged stablecoin.
