Ten international banks are jointly exploring the issuance of an industry-wide form of digital money and are in contact with regulators and supervisors in the relevant markets about the project, BNP Paribas said in a Friday press release.
Together with BNP Paribas, the other participants in this project include Banco Santander, Bank of America, Barclays, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group and UBS, according to the release.
Together, the banks are looking into issuing what the release described as “a 1:1 reserve-backed form of digital money that provides a stable payment asset available on public blockchains, focused on G7 currencies.”
“The objective of the initiative is to explore whether a new industry-wide offering could bring the benefits of digital assets and enhance competition across the market, while ensuring full compliance with regulatory requirements and best practice risk management,” the release said.
Also on Friday, Bloomberg reported that a Citi spokesperson confirmed that the bank plans to join a group of nine European banks in a project to develop a regulated euro-based stablecoin. The nine banks announced that project in September, according to the report.
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The other participants in that project include Banca Sella, CaixaBank, Danske Bank, DekaBank, ING, KBC, Raiffeisen Bank International, SEB and UniCredit, according to a Sept. 25 press release issued by UniCredit.
With their planned euro-denominated stablecoin, the banks aim to provide near-instant, low-cost payments and settlements; round-the-clock access to efficient cross-border payments; programmable payments; and improvements in supply chain management and digital asset settlements, according to the release.
The banks have formed a new company in the Netherlands, invite other banks to join the stablecoin consortium, and plan to issue the stablecoin in the second half of 2026.
“The initiative will provide a real European alternative to the U.S.-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments,” the release said. “Individual banks will be able to provide value added services, such as a stablecoin wallet and custody.”
PYMNTS reported in May that banks see stablecoins as a promising mechanism for streamlining and speeding up cross-border transactions, payments settlements and other routine financial processes.
That report also said that banks have become increasingly wary of stablecoins potentially capturing a significant share of deposits and payment volumes traditionally held by regulated financial institutions, particularly if tech giants or major retailers enter the arena.
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