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In a joint assertion on Friday, Banco Santander, Financial institution of America, Barclays, BNP Paribas, Citi, Deutsche Financial institution, Goldman Sachs, MUFG Financial institution Ltd, TD Financial institution Group, and UBS mentioned they’re “collectively exploring the issuance of a 1:1 reserve-backed type of digital cash that gives a steady fee asset obtainable on public blockchains, centered on G7 currencies.”
The Group of Seven (G7) international locations are made up of the US, Canada, France, Germany, Italy, Japan, and the UK.
The announcement didn’t reveal a timeline for the challenge, which might seemingly compete with Tether’s USDT, the world’s largest stablecoin by market cap.
Stablecoins are cryptocurrencies whose worth is tied to non-volatile fiat currencies resembling {dollars}, euros, or yen. They play a key function within the cryptoverse, permitting customers to switch cash internationally.
 
The objective of the joint initiative is to find out whether or not “a brand new industry-wide providing might deliver the advantages of digital property and improve competitors throughout the market, whereas guaranteeing full compliance with regulatory necessities and greatest follow danger administration,” the assertion reads.
The banks additionally revealed that they’re “in touch with regulators and supervisors in every related market and can proceed to maintain acceptable events up to date because the challenge progresses.”
A number of the greatest names within the conventional monetary (TradFi) world, like Amazon and Walmart, and main banks like Financial institution of America, have in current months expressed curiosity in introducing their very own tokens. That is after the passage of the GENIUS Act, a invoice to manage issuing and buying and selling stablecoins, which was signed into legislation by U.S. President Donald Trump in July.
Moreover Tether’s USDT, which has a market cap of round $179 billion at press time, different high stablecoins embrace the US dollar-pegged USDC, Dai, Ethena, USDe, PayPal USD, and USD1, the coin issued by the Trump family-backed DeFi challenge World Liberty Monetary.
