Twenty-one financial institutions today committed to establish a company to issue a USD stablecoin, targeting a market launch in the first half of 2027. The group, which announced its exploratory phase last October with ten global systemically important banks (G-SIB), plans to expand into other G7 currencies over time, with the euro as the priority. Potential use cases will target wholesale, institutional and retail markets, with the new company to be formed in the second half of this year, subject to closing conditions.
The thirteen newcomers change the group’s character. The original membership was exclusively global systemically important banks. Eight of the ten original banks remain: Banco Santander, Bank of America, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank and UBS. The expanded roster brings the G-SIB count to 17 and the total number of banks to 18, including BBVA, Capital One, Commerzbank, Crédit Agricole, Lloyds, PNC, Scotiabank, Rabobank, Wells Fargo and Standard Bank (not a G-SIB). They are joined by two US asset managers, Fidelity Investments and WisdomTree, and Abu Dhabi conglomerate subsidiary Sirius International Holding.
Both asset managers already issue their own stablecoins. Fidelity launched FIDD in January through its federally chartered national trust bank, and WisdomTree issues USDW under its New York trust charter. Their participation suggests the industry has concluded that no single institution’s coin can achieve sufficient network effects. It also raises the question of whether either firm’s regulated issuance entity could serve the group. We previously wrote about the rationale for asset managers to participate in stablecoin issuance.
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