Ten of the world’s leading financial institutions, including Goldman Sachs, Citigroup, Bank of America, Deutsche Bank, UBS, BNP Paribas, MUFG, TD Bank, Barclays and Santander, have formed a consortium to evaluate the launch of stablecoins backed by G7 currencies., It aims to integrate the benefits of digital money into the regulatory standards of the traditional banking system.
As reported by Reuters, the group is seeking to determine “whether new industry collaboration services can deliver the benefits of digital assets while ensuring full regulatory compliance and best risk management practices.” This project is in the preliminary stage. Final implementation has not yet been determined.
What we know about the project
Stablecoins are backed 1:1 by currencies such as the US dollar, the euro, or the British pound, and are issued through public networks. The aim, the bank explains, is to create a form of digital money that maintains the reliability and stability of traditional currencies, while at the same time enabling faster and more efficient payments around the world.
This move reflects increased attention from financial institutions. Entering a market that was previously dominated by virtual currency companies as Tether (USDT) and Circle (USDC), It controls over 70% of the amount of stablecoins in circulation.
The consortium stressed that operating under a strong regulatory framework is a priority.in line with regulations that set strict rules for stablecoin issuers, such as the Genius Act in the United States and MiCA in the European Union.
“We want to see innovation within security and financial oversight,” it said in a statement cited by Reuters. If this initiative comes to fruition, it could mark a turning point in the relationship between the banking system and digital finance.
(Tag Translate) Banking and Insurance
