"The bank version of USDT is here! Traditional financial giants have collectively 'defected,' with Goldman Sachs leading 21 institutions to enter the stablecoin arena."

A group of 21 financial institutions, including Goldman Sachs, Bank of America, Citigroup, and Deutsche Bank, announced on Tuesday that it plans to establish a company this year and issue a cryptocurrency pegged to the U.S. dollar in the first half of 2027. The group was first publicly announced in October 2025, when it initially included only 10 banks. In its statement, the group indicated that its goals also include expanding to stablecoins pegged to other G7 currencies, with the euro being the priority. Stablecoins are used to transfer funds globally in the form of cryptocurrencies and are primarily utilized for cryptocurrency trading. However, the rebound in cryptocurrency prices in 2024 and former President Trump's support for the industry have revived interest in the use of blockchain technology within the mainstream financial system. The group will compete with another alliance made up of 37 financial institutions, which has formed a company named Qivalis and plans to launch a euro-pegged stablecoin later this year. Some institutions, including Spain's second-largest bank (BBVA), are members of both groups. Former President Trump's family's cryptocurrency business, World Liberty Financial, has also issued its own stablecoin. Despite this, there are currently almost no signs that the market demands stablecoins issued by banks. The stablecoin market is currently dominated by Tether, headquartered in El Salvador, which claims to have issued tokens worth over $180 billion pegged to the U.S. dollar and has earned billions in profits by investing its reserves in assets including U.S. Treasury bonds. France's Industrial Bank, which is not part of either alliance, became the first large bank to issue a dollar-backed stablecoin last year through its digital asset subsidiary. According to its website, the token has not seen widespread adoption, with a circulation of only $12.5 million. European Central Bank President Christine Lagarde has previously warned that stablecoins issued by private entities pose risks to monetary policy and financial stability.