Twenty-one major banks are building a stablecoin, but the bigger story is not the token itself. The real issue is who will 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 acting alone. A separate group of 37 financial institutions, Qivalis, is developing a euro-denominated stablecoin, while a consortium of more than 140 companies is working on its own Open USD stablecoin.

The overlap is significant. Traditional finance is no longer treating stablecoins as a side project. Banks increasingly view them as infrastructure and want a direct role in building that layer, especially as regulators in the U.S. and Europe formalize the rules that could shape how these assets are issued and used.

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 expected 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 be designed to target compliance with the U.S. GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation (MiCA).

The importance of the project is not just that another stablecoin may enter the market. The participating banks already bring what many existing issuers have had to assemble over time: regulated banking relationships, corporate clients, custody infrastructure, compliance capabilities and access to established payment networks.

That combination could give a bank-issued stablecoin a meaningful distribution advantage, particularly in markets where firms already rely on banks for treasury management, settlement and cross-border payments.

The Competition Extends Beyond the Stablecoin

The new initiative would place the banks directly against established dollar stablecoins such as USDT and USDC. But the larger competition is taking shape around the stablecoin itself, as stablecoins increasingly look like a new layer of the financial system and major institutions are moving early to secure a position in that layer.

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 also developing Open USD, a stablecoin project backed by firms 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 increasingly building around stablecoins rather than leaving the infrastructure entirely 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 approach, but it is also focused on the cash and U.S. Treasury assets that can back digital dollars.

In August 2026, BlackRock 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 place.

The Real Battle Is Infrastructure

The 21-bank initiative matters for more than 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 about which stablecoin wins. It is about who controls the infrastructure behind digital money.