A number of global banks are working together to plan and launch the stablecoin initiative, according to multiple press releases issued by participating banks on Friday. The banking group includes Bank of America, Citi, Deutsche Bank, Goldman Sachs, and UBS.
The following banks are involved in the reported project:
- bank of america
- goldman sachs
- deutsche bank
- BNP Paribas
- Santander
- barclays
- TD Bank
- Muffugu
- UBS
- city
The project is reportedly in its early stages and will consider creating stablecoins, which are assets on a public blockchain that are pegged 1:1 to real-world currencies and pegged to G7 currencies. The global stablecoin market will explode in value in 2025, with multiple countries considering approving these assets. “The objective of this initiative is to consider whether new services across the industry can bring the benefits of digital assets and enhance competition across markets, while ensuring full compliance with regulatory requirements and best practices for risk management,” crypto platform CoinGecko said in a statement.
Bank of America, one of the major banks participating in the project, has previously said it expects stablecoin supply to increase by up to $75 billion in the short term. Additionally, Citigroup earlier this week confirmed a strategic investment in London-based stablecoin infrastructure company BVNK, backed by Coinbase and Tiger Global. The approval of the GENIUS Stablecoin Act this summer opened the floodgates for institutions to get into cryptocurrencies and stablecoins in particular, sending the industry’s value soaring. Stablecoins are currently attracting worldwide attention and many customers are looking to find alternatives to fiat currencies.
