In a landmark move signaling the mainstreaming of blockchain technology, a powerhouse consortium of international banks—including Santander, Bank of America (BoA), Barclays, Citigroup (Citi), and Goldman Sachs—has announced plans to collaborate on developing a shared stablecoin.
This initiative, confirmed by Reuters today, involves creating blockchain-based digital assets pegged 1:1 to major G7 currencies, such as the U.S. dollar and euro, to enable faster, more efficient cross-border payments and settlements.
The full list of participating banks reads like a who’s who of global finance: Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank Group, and UBS. While the project remains in its exploratory phase, it builds on months of buzz around stablecoins amid a crypto-friendly regulatory shift in the U.S. and Europe. This comes hot on the heels of individual banks like BoA and Citi signaling their intent to launch proprietary stablecoins earlier this year.
Why This Matters: A Seismic Shift in Finance
Stablecoins—cryptocurrencies designed to hold steady value by tying to fiat money—have exploded in utility, processing nearly $9 trillion in transactions over the past year, per Visa data. But they’ve been dominated by non-bank issuers like Tether (USDT) and Circle (USDC). Now, these banks aim to muscle in with a “bank-grade” alternative, potentially integrating it into existing payment rails for 24/7 global transfers at minimal cost.
- Regulatory Tailwinds: U.S. President Donald Trump’s pro-crypto stance and recent congressional bills have greenlit stablecoin issuance for qualified institutions. In the UK, the Bank of England is prioritizing tokenized deposits over pure stablecoins, but pilots involving Barclays and Santander are already underway through mid-2026.
- Ripple Effect (Pun Intended): Crypto communities on X are abuzz, noting that many of these banks are partners with Ripple (XRP’s parent company). Posts from influencers like @RippleXrpie highlight the irony: “THOSE ARE ALL RIPPLE PARTNERS 💥 $RLUSD 🤝 #XRP.” This could supercharge adoption of Ripple’s tech for settlements.
- Broader Crypto Momentum: The announcement coincides with Morgan Stanley lifting Bitcoin ownership restrictions for clients, Russia’s central bank easing crypto rules, and startups like BVNK raising funds from Citi Ventures to build stablecoin infrastructure.
#JustIn
🚨 Major global banks — including 𝐁𝐚𝐧𝐤 𝐨𝐟 𝐀𝐦𝐞𝐫𝐢𝐜𝐚, 𝐆𝐨𝐥𝐝𝐦𝐚𝐧 𝐒𝐚𝐜𝐡𝐬, 𝐃𝐞𝐮𝐭𝐬𝐜𝐡𝐞 𝐁𝐚𝐧𝐤, 𝐁𝐍𝐏 𝐏𝐚𝐫𝐢𝐛𝐚𝐬, 𝐒𝐚𝐧𝐭𝐚𝐧𝐝𝐞𝐫, 𝐁𝐚𝐫𝐜𝐥𝐚𝐲𝐬, 𝐓𝐃 𝐁𝐚𝐧𝐤, 𝐌𝐔𝐅𝐆, 𝐔𝐁𝐒 & 𝐂𝐢𝐭𝐢 — is exploring a joint stablecoin pegged 1:1 to G7… pic.twitter.com/xz50HRvGPh— Rula El Halabi (@Rulaelhalabi) October 10, 2025
Potential Challenges Ahead
Experts caution that hurdles remain, including interoperability across blockchains, reserve transparency, and navigating fragmented global regs. “Tokenized deposits might eclipse pure stablecoins in priority,” noted Citi CEO Jane Fraser in July, emphasizing the bank’s live “Citi Token Services” in four markets. Still, with crypto prices soaring, this consortium could unlock trillions in tokenized assets.
This isn’t just banks dipping a toe—it’s a full plunge into Web3. Watch for pilots by mid-2026. What’s your take: Game-changer or regulatory minefield? Drop thoughts below.