21 Financial Institutions Launch Stablecoin Move: USDT and USDC Dominance Could Be Challenged

Twenty-one financial institutions, including Bank of America, Citi, Goldman Sachs, and UBS, plan to establish a joint venture for a stablecoin to be used in payments and digital asset transactions.

Banks and asset managers are preparing to enter the stablecoin market as direct issuers. According to a plan reported by CoinDesk, the as-yet-unnamed company is targeted to be established in the second half of 2026, with the first product slated for launch in the first half of 2027.

The value of the first stablecoin will be pegged to the US dollar. The product is intended for use in payments and digital asset transactions. The initiative later aims to issue stablecoins pegged to other G7 currencies, primarily the euro.

The project emerged as an expanded version of a 10-bank initiative that began working on a digital payment asset in October 2025. The new structure includes a total of 21 financial institutions from North America, Europe, East Asia, the Middle East, and Africa. Participants include Wells Fargo, Deutsche Bank, Santander, Fidelity Investments, MUFG Bank, and Standard Bank.

Banks preparing rivals to USDT and USDC

If the plan materializes, traditional financial institutions could bring a new institutional option to the stablecoin space, which is currently largely dominated by USDT and USDC. According to DeFiLlama data, the total value of the sector has risen from approximately $200 billion at the start of last year to $303 billion.

Dollar-backed products make up the bulk of the market. Tether’s USDT represents approximately 60 percent of the total, while second-place USDC accounts for more than 20 percent. The group aims for its product to be compliant with the GENIUS Act in the US and the European Union’s MiCA regulation.