Wall Street Banks Unite to Launch Stablecoin Rivaling Tether and Circle

Nine global banking giants, including Goldman Sachs, Deutsche Bank, and Bank of America, have formed a consortium to develop a G7 currency-backed stablecoin. The initiative aims to compete with existing players like Tether and Circle, leveraging public blockchains for faster, cheaper payments.

The coalition is already engaging regulators, signaling a strategic push into the $50 trillion digital payments opportunity. Stablecoins have gained traction as efficient alternatives to traditional rails, with issuers earning substantial yields on reserve assets.

This MOVE accelerates institutional blockchain adoption following clearer regulatory frameworks in the US and EU. The banks' entry could reshape market dynamics in a sector currently dominated by crypto-native projects.