A consortium of 21 major financial institutions says it plans to form a new company dedicated to developing and issuing stablecoins, signaling a renewed effort from traditional banks to build digital-dollar rails that fit emerging regulations. The group announced Tuesday that it aims to launch a US dollar-denominated stablecoin in the first half of 2027, once the company is formed and other conditions are met.

Beyond a first US dollar product, the consortium says it intends to expand to stablecoins denominated in other G7 currencies, with a euro offering identified as its next priority. The planned tokens are intended to serve wholesale, institutional, and retail users, including applications such as cross-border payments and digital asset settlement.

Key takeaways

• 21 large financial institutions plan to create a company to develop and issue stablecoins.
• The initial product is expected to be a US dollar-denominated stablecoin in the first half of 2027.
• Officials say the stablecoin framework will aim to comply with the US GENIUS Act and, where applicable, the EU’s MiCA.
• After the dollar launch, the consortium’s stated next step is a euro-denominated stablecoin.
• The consortium more than doubled compared with an earlier October effort involving 10 banks exploring reserve-backed stablecoins.

From bank pilots to a coordinated stablecoin company

The Tuesday announcement frames the initiative as a step toward a more formal, multi-institution approach to stablecoins. The consortium names Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG, and Fidelity Investments, among others.

While stablecoins have already gained traction across parts of the financial ecosystem, this move stands out for its scale and for the breadth of the participating institutions across regions including North America, Europe, East Asia, and parts of the Middle East and Africa. The group’s expansion from the earlier, smaller effort suggests momentum is building toward shared infrastructure rather than isolated, institution-by-institution experiments.

In October 2025, Reuters reported that an initial group of 10 banks was exploring a 1:1 reserve-backed model of digital money available on public blockchains. The new consortium effectively builds on that earlier exploration, with the stated plan now moving closer to an eventual issuance roadmap, albeit still contingent on forming the company and meeting other unspecified conditions.

Regulatory alignment is central to the plan

Stablecoin projects increasingly rise or fall on regulatory fit, and the consortium is explicitly tying its design goals to compliance pathways. According to the announcement, the planned stablecoin will aim to comply with the US GENIUS Act and the EU’s Markets in Crypto-Assets Regulation (MiCA), where applicable.

This matters for more than public messaging. Stablecoin issuers and distributors typically need legal clarity around reserve management, redemption, consumer protections, and supervisory oversight. By explicitly referencing both US and EU frameworks, the consortium is signaling that it wants the token to operate not just as a blockchain-native instrument, but as an asset that can be integrated into regulated distribution channels.

That regulatory emphasis also aligns with broader shifts in the sector. Stablecoins have seen growing adoption in recent years, and the passage of GENIUS and MiCA has helped clarify routes that were previously more uncertain for mainstream institutions.

Where the consortium says it wants to use the token

The announcement says the stablecoin is designed for wholesale and institutional use as well as retail access. Use cases highlighted include cross-border payments and digital asset settlement—applications where speed, programmability, and transfer finality are often treated as advantages compared with traditional correspondent banking flows.

For investors and market participants, the inclusion of multiple target segments suggests the consortium wants the stablecoin to function across different integration levels: internal settlement for financial firms, cross-border transfer for payment corridors, and easier access for retail users through downstream partners.

The planned multi-currency expansion further indicates the project is not intended to be a one-off US dollar product. The consortium’s stated next priority is a euro-denominated stablecoin, which could matter for liquidity planning and for cross-border use cases within Europe and between regions.

Broader industry momentum: Asia policy, bank issuance, and institutional surveys

This consortium’s announcement comes amid other signs of institutional progress. In Singapore, for example, the country’s authorities are said to be considering allowing jointly issued cross-border stablecoins into its regulatory regime. The Tuesday announcement reportedly revisits an earlier position that limited the framework to domestic issuance.

Separately, institutional interest has been building through both surveys and product launches. Earlier in 2025, a Fireblocks survey of 295 executives found that 90% of respondents were using or planning to use stablecoins, underscoring that demand is not limited to crypto-native companies.

There have also been concrete issuance steps by major firms. According to coverage referenced by the article, Societe Generale’s crypto subsidiary has issued euro- and dollar-denominated stablecoins, and Fidelity has launched a US dollar-pegged FIDD stablecoin. The article also notes Standard Chartered’s backing of a Hong Kong dollar stablecoin venture.

Taken together, these developments suggest a shift from isolated experiments toward products that can be distributed, regulated, and operationalized at institutional scale. The consortium’s planned US-dollar launch in 2027 can be read as part of that same arc—moving from “can it work?” to “how does it fit within the rules and distribution networks?”

For market watchers, the key question is whether the consortium’s approach—reserve-backed stablecoins with compliance targets aimed at GENIUS and MiCA—will translate into a deployable issuance plan that other institutions can readily integrate with. Investors should watch for updates on the company’s formation, the exact token structure and reserve arrangements, and how the group coordinates cross-border deployment as regulators continue to clarify stablecoin treatment.

Japan’s JGB yield now at 30-year high 

Global long-term bond yields are now at the highest level since the 2008 financial crisis as major long-dated sovereign bonds continued to sell off into trading on Tuesday.

The sell off comes only days after US Treasury Secretary Scott Bessent made headlines by announcing that the maximum size of debt buyback transactions would be increased to $4 billion from September.  

While the Treasury does not conduct monetary policy, some commentators have compared this to a form of yield curve control. This has brought the debasement narrative, keenly followed by Bitcoin and precious metal investors, back into the spotlight. 

Japan’s 10-year government bond yield surged to 3% for the first time since 1996 on Tuesday, while the 30-year JGB yield topped a record 4.18%. The 10-year US bond yield also surged to a new multi-year high and stands at 4.78% at the time of writing.

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10-Year Japanese government bond. Source: TradingView 

Officials in both countries face a mutual bind with respect to the Japanese yen: Tokyo can neither raise policy rates without incurring an operating loss that ultimately hits the Finance ministry, nor repatriate capital without divesting the Treasury securities on which Washington’s financing depends.

Industry commentators such as Arthur Hayes have argued for years that the Fed will eventually use its Foreign and International Monetary Authorities (FIMA) repo facility. Through this swap line, Japan’s Finance ministry could borrow dollars against its Treasury holdings and sell them for yen, strengthening the currency without causing an imminent sovereign bond crisis.

This mechanism would create new dollar liquidity, which is why Hayes recommends positioning in Bitcoin (BTC), gold and crypto. Treasury Secretary Scott Bessent hinted at the future use of the FIMA facility in August.

Rising long-term yields may be the first sign that Hayes’s scenario is being priced in. Robin Brooks, senior fellow at the Brookings Institution commented on X: “For the past two years, Japan has been in a “Liz Truss” bond market crisis whereby its currency falls even as government bond yields go ever higher. We’ve never had a major G10 sovereign experience something like this and it’s deeply destabilizing…”

10-year interest swap rate and trade-weighted JPY.
Source: Robin Brooks on X.com

Bitcoin continues sideways movement

In the face of Tuesday’s bond sell-off, Bitcoin has been trading sideways near the $78,000 mark, following a minor corrective decline from its morning high close to $79,000.

Cointelegraph previously reported on a thick patch of resistance between the current spot price and $86,000. This has slowed Bitcoin’s upside momentum despite positive news and renewed interest in the debasement trade. 

Related: Bitcoin faces true demand test above $83K as liquidity thickens: Glassnode

Overall sentiment across recent reports remains mixed to cautiously optimistic in the short term after the strong August recovery, with the $76,000-$82,000 range as the key battleground for the coming weeks.

S&P 500 index futures sold off by 0.3% on Tuesday and the gauge now hovers around 7,660, the lowest level since Aug. 4. This comes as tensions in the Iran war flare up once more. Oil prices rose more than 2%, with WTI around $88 per barrel and Brent above $92, fueled by renewed US-Iran fighting, including strikes, tanker incidents in the Strait of Hormuz, and comments from President Donald Trump.

S&P 500 out-of-hours futures. Source: X.com

Ripple and SettleMint unveiled a new partnership on September 1. The deal merges custody, issuance, and lifecycle management into a single platform. Traditional finance firms now gain a simpler path toward digital asset adoption.

A Unified Platform for Institutions

SettleMint announced the collaboration in an official statement this week. The partnership links Ripple Custody with SettleMint’s Digital Asset Lifecycle Platform, known as DALP. Together, the two systems aim to accelerate tokenization adoption across the Asia Pacific region.

Fiona Murray, Ripple’s managing director for Asia Pacific, explained the strategic thinking behind the move. Institutions want to deploy digital assets without juggling separate systems for custody and governance. The combined platform gives them one foundation to build on and expand later.

Adam Popat, CEO of SettleMint, echoed that view in his own remarks. He described global capital markets as shifting fully on-chain in the current moment. As a result, custody and lifecycle management must now function as a single system rather than two.

Ripple’s Broader Institutional Strategy

Ripple continues to expand its custody infrastructure through several additional partnerships. The company has deepened ties with Securosys, Figment, and Chainalysis in recent months. These integrations aim to simplify how institutions secure digital assets, stablecoins, and real-world assets.

Ripple also plans to roll out the XRP Ledger v3.3.0 upgrade soon. The upgrade places tokenized real-world assets at the center of its roadmap. This step reflects Ripple’s wider strategy to court institutional capital through infrastructure improvements.

XRP itself traded higher following the announcement, rising more than one percent within 24 hours. The token moved between $1.36 and $1.40 during that window. Trading volume fell 16 percent, yet CME futures open interest still surpassed figures on Binance.

Regulatory Momentum Fuels Sector Growth

The partnership arrives as regulators reshape the tokenization landscape inside the United States. The SEC introduced tokenization innovation exemptions under the current administration this year. These changes encourage more institutions to seriously explore blockchain-based asset management.

The Depository Trust and Clearing Corporation also plans to launch its own tokenization service. That rollout is scheduled for October and adds further momentum to the sector. Multiple major players now compete to serve rising institutional demand for on-chain assets.

Financial firms increasingly need compliant infrastructure to manage complex ledger configurations safely. Custody providers must now handle growing volumes of tokenized assets without added risk. The Ripple-SettleMint partnership positions both companies to meet that rising demand directly.

Institutions across Asia Pacific stand to benefit most from this streamlined approach. Rather than managing multiple vendors, banks can now consolidate custody and issuance functions. This consolidation may lower operational costs while improving oversight of digital asset holdings.

The tokenization market continues to grow as traditional finance embraces blockchain technology further. Partnerships like this one signal a maturing industry ready for institutional-scale adoption. Ripple and SettleMint now join a growing list of firms building that infrastructure together.

Ethena has launched a global money app built around its USDe synthetic dollar, expanding the crypto-native asset into everyday payments, savings and cross-border transfers.

According to Tuesday’s announcement, the self-custodial Ethena Pay app allows users to hold USDe through a dollar-denominated balance, earn as much as 6% in annualized rewards and spend funds through a payment card, while supporting fiat onramps.

The beta rollout includes 48 countries across Latin America, the Caribbean, Africa, Asia and other regions, though the initial rollout is limited to 400 users, with access set to expand weekly, Ethena said in a Tuesday thread on X. Avalanche will serve as the exclusive settlement layer for payments and transfers.

Source: Ethena

Users can deposit fiat or crypto, with funds converted into USDe (USDe). The app enables using IBAN details to move money to and from external bank accounts into local currencies. MoonPay-owned Iron provides backend infrastructure.

Ethena Pay is not initially available in the US, EU, Canada, Taiwan or South Korea, though Ethena expects to expand into those markets during the beta, subject to regulatory approval.

Related: Chelsea FC gets a stablecoin sponsor after UK FCA warning to clubs

Ethena’s USDe grows as ENA rallies

Ethena is an Ethereum-based protocol behind USDe, a synthetic dollar designed to maintain its value near $1 without relying on traditional banking infrastructure.

USDe uses crypto collateral alongside hedging strategies, including derivatives positions, to help maintain its peg. The asset has grown to a market capitalization of about $4.1 billion, making it the sixth-largest stablecoin, according to DefiLlama data.

USDe market cap. Source: DefiLlama

Ethena also operates ENA, the protocol’s governance token, which has a market capitalization of roughly $1.5 billion. The token has rallied sharply over the past month, gaining about 68%, but remains well below its previous highs.

On Friday, the Ethena Foundation proposed directing 95% of the net revenue it receives from Ethena’s core businesses toward ENA buybacks once USDe’s circulating supply reaches $7.5 billion. ENA rose more than 10% following the proposal and gained 27% over the week.

The token recorded about $595 million in trading volume over the past 24 hours, up 16% from the previous day, and was trading around $0.16 on Tuesday, according to CoinGecko.

Magazine: Does the Bitcoin rally mean we haven’t wasted our lives in crypto?

A group of 21 major financial institutions plans to establish a new company to develop and issue stablecoins, offering another sign of traditional finance’s push into digital dollars as regulatory frameworks take shape.

The consortium, announced Tuesday, includes Bank of America, Goldman Sachs, Citi, Deutsche Bank, UBS, Santander, MUFG and Fidelity Investments. It plans to launch a US dollar-denominated stablecoin in the first half of 2027, subject to the company’s formation and other conditions.

According to the announcement, the group ultimately plans to expand into stablecoins denominated in other G7 currencies, with a euro offering identified as its next priority.

The consortium said its stablecoin will target wholesale, institutional and retail markets, including use cases such as cross-border payments and digital asset settlement. The initiative is intended to comply with both the US GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation (MiCA), where applicable.

The venture builds on an initiative announced last October, when an initial group of 10 banks said they were exploring a 1:1 reserve-backed form of digital money available on public blockchains. The consortium has since more than doubled in size, bringing together financial institutions across North America, Europe, East Asia, the Middle East and Africa.

Related: Kast launches stablecoin-powered business platform after $80M raise

Banks deepen push into stablecoins

The move comes as stablecoins have grown considerably in recent years, with the passage of the GENIUS Act and MiCA creating clearer regulatory pathways for adoption.

Elsewhere, Singapore is considering allowing jointly issued cross-border stablecoins into its regulatory regime, according to a Tuesday announcement, revisiting its earlier decision to restrict the framework to domestic issuance.

Institutional interest was already taking shape in early 2025, when a Fireblocks survey of 295 executives found that 90% of respondents were using or planning to use stablecoins.

Since then, major financial institutions have expanded their presence in the sector. Societe Generale’s crypto subsidiary has issued euro- and dollar-denominated stablecoins, while Fidelity recently launched its US dollar-pegged FIDD stablecoin. 

SocGens crypto subsidiary has issued euro- and dollar-denominated stablecoins, as has Fidelity, with its FIDD US dollar-denominated entry. Last month, Standard Chartered backed a Hong Kong dollar stablecoin venture.

Related: SEC sends crypto custody rule overhaul to White House for review