Author: Claude, Deep Tide TechFlow
Deep Tide Guide: On September 1st, 21 traditional financial giants including Goldman Sachs, Bank of America, and Citigroup formed a rare alliance, announcing plans to launch a US dollar stablecoin by 2027. The news caused Circle's stock price to fall by 6.35%. However, can Wall Street's 'regular army' truly shake the established fortress of the crypto-native market? Looking back at Societe Generale's high-profile entry earlier, its issued USDCV has been live for nearly a year, yet its circulating supply remains a dismal $12.6 million. Facing the extremely high barriers of the crypto market and the battle over compliance nodes, this seemingly luxurious financial alliance might end up being all talk and little action.
21 Institutions Ally to Issue a Coin: Why Is JPMorgan Missing?
On September 1st, a joint statement released by Brunswick Group dropped a bombshell in both traditional finance and crypto circles: 21 top-tier financial institutions have decided to join forces, planning to establish a joint venture specifically for issuing stablecoins in the second half of 2026.
According to the current blueprint, the alliance's first product is a US dollar stablecoin slated for release in the first half of 2027, with plans to extend its reach to G7 currencies like the Euro thereafter, targeting cross-border payments and digital asset settlement markets. It's noteworthy that in this list of giants spanning five regions—including Goldman Sachs, Citi, UBS, and Deutsche Bank—the king of Wall Street, JPMorgan, is conspicuously absent. Considering that JPM Coin is already operational within its internal settlement network, JPMorgan clearly isn't keen on sharing its pie with this massive consortium.
Sniper on 'Interest-Free Capital': The Stablecoin Printing Press That Wall Street Covets
Why are traditional banking giants forming such a dense alliance now? The answer lies within the terrifying balance sheets of Tether and Circle.
Under the current stablecoin business model, issuers take users' fiat currency as reserves, invest it in high-interest Treasury markets, yet pay almost no interest to the users holding the stablecoins. This 'legally interest-free money' has evolved, in the current high-interest environment, into a profit-generating machine with astonishing, virtually risk-free returns. Watching stablecoin issuers, with minimal manpower, rake in net profits surpassing those of many Wall Street investment banks, these 21 financial giants clearly can no longer remain bystanders. They aim to seize this most lucrative profit territory through alliance.
Grim Precedent: Can the Compliance Alliance Shake the Native Fortress?
However, does entering with a Wall Street halo guarantee buying liquidity in the crypto market?
Looking back at the first report card for 'banking stablecoins,' the reality is starkly unforgiving. Previously, Societe Generale had high-profile launched its stablecoin USDCV. Despite the credit backing of a top-tier European bank, its circulating supply was a dismal $12.6 million nearly a year after launch. In the trading habits of crypto natives, Tether (USDT) and Circle (USDC) have long built deep liquidity moats. Faced with the integration inertia of DeFi protocols and the trading pair dominance of exchanges, a compliant stablecoin issued by Wall Street, if it's merely 'more compliant,' will most likely become an internal settlement tool for traditional institutions to amuse themselves.
The Decisive Battle: July 2028 – The Final Window Before a Major Reshuffle
Time is not plentiful for this alliance. According to the current regulatory countdown, July 18, 2028, will be a critical juncture for U.S. platforms to collectively clean up a batch of non-compliant stablecoins.
From the dismal $12.6 million pilot test to the massive size of the entire stablecoin market exceeding $100 billion, what lies between is not just the compliance test of July 2028, but also a close-quarters battle between traditional finance and Web3 native capital. When the 21 giants truly launch their product to the market in 2027, they will face a red ocean already carved up by native giants and characterized by extremely concentrated liquidity. Will this high-profile alliance be the game-changer that reshapes the stablecoin landscape, or just another traditional financial experiment struggling to adapt? The market will soon price in the answer.
