A consortium of major banks including Goldman Sachs Group Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), UBS Group AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), and Bank of America Corp. (NYSE:BAC) announced plans to explore blockchain-based assets pegged to G7 currencies, according to Reuters.
Wall Street Backs Blockchain Assets
The joint initiative aims to develop tokenized settlement systems backed by the U.S. dollar, euro, and other G7 currencies.
The group reported in Friday press release that it intends to design interoperable digital assets for regulated financial institutions, marking one of the largest collaborative efforts by banks to date.
This announcement follows months of speculation after President Donald Trump's administration passed the GENIUS Act.
The act has opened the door for U.S. banks to issue and hold blockchain-backed currencies under clear regulatory oversight.
Citi Deepens Stablecoin Bet With BVNK Investment
Earlier this week, Citigroup confirmed a strategic investment in BVNK, a London-based stablecoin infrastructure company backed by Coinbase and Tiger Global.
BVNK operates a cross-border payments platform that facilitates conversions between fiat and digital assets for banks and fintech firms.
BVNK co-founder Chris Harmse told CNBC that the firm has expanded its U.S. operations over the past year amid rising institutional demand for stablecoin settlement.
He said BVNK's valuation now exceeds $750 million, with Citi's backing highlighting Wall Street's confidence in the stablecoin model as part of global payment modernization.
Citi's CEO Jane Fraser has previously hinted at developing a proprietary "Citi stablecoin," positioning the bank as one of the earliest U.S. institutions to explore private blockchain settlement tokens.
Stablecoin Market Hits Record $314 Billion
According to Visa, global stablecoin transactions reached nearly $9 trillion over the past year, while CoinMarketCap data shows the combined stablecoin market capitalization has climbed to $314 billion.
Tether's USDT (CRYPTO: USDT) and Circle's USDC (CRYPTO: USDC) continue to dominate with $178 billion and $75 billion in circulation, respectively.
Analysts at JPMorgan Chase & Co. (NYSE:JPM) estimate that the rise of dollar-backed stablecoins could add $1.4 trillion in demand for U.S. dollars by 2027.
The bank argues that, contrary to de-dollarization narratives, stablecoins may actually strengthen the dollar's role in global finance by digitizing access to it.
Standard Chartered Flags $1 Trillion Emerging Market Shift
While the U.S. and Europe move toward stablecoin integration, Standard Chartered Plc (LON: STAN) has warned that emerging market banks could lose up to $1 trillion in deposits within three years as savers shift toward digital dollar alternatives.
The bank's report said populations facing inflation and currency instability are likely to migrate capital into regulated dollar-pegged stablecoins, viewing them as safer and more stable stores of value.
Although the GENIUS Act prohibits issuers from offering yield-bearing stablecoins, Standard Chartered noted that adoption is still likely to accelerate in developing regions as users seek protection from local monetary volatility.
Trump Administration's Policy Catalyst
The GENIUS Act has become the cornerstone of the Trump administration's crypto policy, clarifying long-standing regulatory ambiguity and allowing federally chartered institutions to hold and issue digital assets.
The law also enabled the Trump-affiliated WLFI Group to launch its own stablecoin, USD1, earlier this year.
Analysts see this as a turning point for Wall Street's digital strategy, aligning government policy with the banks' pursuit of blockchain efficiency.
By entering the stablecoin market, major banks aim to reclaim ground previously dominated by fintech firms such as Circle (NASDAQ:CRCL) and Tether, and to ensure compliance within a regulated framework.
Why It Matters
Stablecoins are no longer just crypto's utility tokens, they are becoming the backbone of a new financial order.
When Wall Street giants like Citi, Goldman, and UBS move in, it signals that tokenized dollars could rival legacy rails like SWIFT or Visa.
The bigger picture is not just about payments but about the future of monetary sovereignty, where programmable money rewires capital flows globally.
If stablecoins capture even a fraction of the $100 trillion payments market, the shift could dwarf Bitcoin's own adoption curve and redraw the map of global finance.
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