Key TakeawaysA coalition of 21 banking giants, including Goldman Sachs, Citi, and Bank of America, is forming a new stablecoin venture set to launch in late 2026.Their first product will be a dollar-backed stablecoin, scheduled to hit markets during the first six months of 2027.Plans include launching a euro stablecoin next, followed by additional tokens pegged to other major global currencies.The initiative will adhere to U.S. GENIUS Act requirements and the European Union’s MiCA regulatory standards.News of the venture sent Circle stock tumbling approximately 6%, reflecting concerns about intensified market competition for USDC.Twenty-one prominent banking institutions have revealed their intention to create a joint venture dedicated to launching stablecoins for payment processing and digital asset transactions. The alliance brings together Goldman Sachs, Citi, Bank of America, Deutsche Bank, UBS, Santander, Wells Fargo, MUFG Bank, Fidelity Investments, Standard Bank, and several other major players.HUGE: 21 of the world's LARGEST banks are teaming up to launch their OWN stablecoin.Bank of America, Citi, Goldman Sachs, Deutsche Bank, UBS, Wells Fargo, Fidelity and 14 others will form a new company to issue a dollar-backed stablecoin, with a launch targeted for the first… pic.twitter.com/S68bnhj7sM— Coin Bureau (@coinbureau) September 1, 2026Formation of the new entity is slated for the latter half of 2026, pending fulfillment of various closing requirements. Member institutions represent financial centers across North America, Europe, East Asia, the Middle East, and Africa.Their initial offering will be a stablecoin pegged to the U.S. dollar, with market availability targeted for early 2027. Following that launch, a euro-pegged token ranks as the next development priority, with plans to expand into other major G7 currencies thereafter.The digital currency will serve wholesale, institutional, and retail customers. Anticipated applications encompass international payment transfers and settlement of digital asset transactions.Prioritizing Regulatory AlignmentThe banking coalition emphasized its commitment to satisfying requirements under both the United States GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation (MiCA). Both legislative frameworks have established more defined regulatory pathways for stablecoin implementation.This initiative has roots dating back several months. In October 2025, ten financial institutions initially announced they were investigating a reserve-backed digital payment instrument deployable on public blockchain networks. Membership in the group has since expanded by more than twofold.Similar movements are occurring throughout the banking sector. Societe Generale’s digital asset division has previously launched both euro and dollar-denominated stablecoins. Fidelity introduced its proprietary dollar stablecoin named FIDD. Last month, Standard Chartered provided backing for a Hong Kong dollar stablecoin project.Research conducted by Fireblocks in 2025, surveying 295 industry executives, revealed that 90% were either currently utilizing or intending to implement stablecoins, demonstrating substantial industry momentum preceding this announcement.Market Impact on CircleThe stablecoin sector has expanded from approximately $200 billion in early 2024 to around $303 billion currently. Tether’s USDT commands roughly 60% market share. Circle’s USDC controls slightly more than 20%.Circle has encountered mounting competitive challenges throughout this year. In June, over 140 organizations—including Stripe, Coinbase, Visa, Mastercard, and BlackRock—unveiled intentions to introduce a competing stablecoin called Open USD.Tuesday’s announcement intensified that pressure. Circle’s stock price declined approximately 6%, trailing behind the performance of most other cryptocurrency-related equities.Meanwhile, Singapore is reassessing its stablecoin regulatory approach. Authorities are evaluating whether to permit cross-border stablecoins issued through joint ventures within their regulatory structure, representing a shift from earlier policies that restricted issuance to domestically-based tokens.The consortium has not yet disclosed a name for the new company.The post 21 Major Banks Including Goldman Sachs and Citi Plan 2027 Stablecoin Launch appeared first on Blockonomi.