International Banks Collaborate on Stablecoin Initiative
In a significant move within the financial sector, several leading international banks are collaborating to investigate the stablecoin market. This consortium includes renowned institutions such as Goldman Sachs, Deutsche Bank, Bank of America, Citigroup, and Banco Santander, among others. As reported by Bloomberg on October 10, the banks aim to create a stablecoin that will be backed by reserves at a 1:1 ratio, ensuring a reliable digital currency option that can operate on public blockchains.
Targeting Major Economies and Regulatory Engagement
The initiative primarily targets major economies of the G7 and involves banks like BNP Paribas, MUFG, TD, and UBS, who have already initiated discussions with regulatory bodies to facilitate this venture. The group is optimistic that their foray into stablecoin could foster competition and harness some benefits typically associated with cryptocurrency assets.
Recent Developments in the Stablecoin Landscape
This inclination towards stablecoins is not isolated. Just weeks prior, on September 25, a collective of nine significant European banks, including names like ING, UniCredit, Danske Bank, and CaixaBank, made headlines with their intentions to develop a joint stablecoin, buoyed by favorable regulatory conditions. The recent GENIUS Act in the United States, which provides clarity on regulatory standards, has been a pivotal factor in motivating such financial entities to investigate stablecoins further. Similar regulatory responses in various jurisdictions demonstrate a global interest in ensuring they remain competitive in the evolving landscape of digital finance.
Economic Potential of Stablecoins
As this sector expands, stablecoins are increasingly recognized as having substantial economic potential, as highlighted by Circle’s recently reported revenue of $634 million for Q2 2025, marking a remarkable 50% increase compared to the previous year. This underscores the growing acknowledgement of stablecoins as a crucial financial innovation.
