A consortium of global banks is testing blockchain-based stablecoins pegged to G7 currencies, signaling a coordinated move toward digital money under institutional control. The group includes Bank of America, Citi, Deutsche Bank, Goldman Sachs, UBS, Santander, and BNP Paribas.
Announced on Friday, the coalition plans to explore the issuance of digital assets pegged to G7 currencies. The project aims to test how public blockchains can host fully compliant, institutionally backed stablecoins.
The initiative, still in its early stages, will evaluate whether such “digital money” could enhance cross-border settlements, liquidity management, and competition in global markets. It comes as rising crypto prices and renewed political support for blockchain, including from U.S. President Donald Trump, have reignited traditional finance’s interest in on-chain infrastructure.
“The goal is to assess whether an industry-wide framework can bring the efficiency of digital assets while meeting full regulatory and risk management standards,” the group said in a joint statement.
Global banks’ foray into stablecoin landscape
Currently, the stablecoin market remains dominated by Tether (USDT), which controls roughly $179 billion of the $310 billion in circulation, as per DeFiLlama data. Traditional banks have so far struggled to compete, with only Societe Generale’s dollar-backed stablecoin reaching the market and circulating a modest $30.6 million to date.
The new banking initiative underscores a broader convergence between traditional financial institutions and blockchain-based systems. As banks experiment with regulated stablecoins, central banks are simultaneously exploring the inclusion of digital assets within their reserve portfolios, a shift recently highlighted by Deutsche Bank’s “Gold’s Reign, Bitcoin’s Rise” report.
According to the research, global central banks could diversify into Bitcoin and gold by 2030, reducing dependence on the U.S. dollar as a reserve currency. The study argues that Bitcoin’s falling volatility and growing institutional demand make it a modern equivalent of gold in a digital economy.
Deutsche Bank’s dual role, developing G7-backed stablecoins while advocating Bitcoin as a reserve asset, shows how institutions are hedging both sides of digital finance. With such moves, banks are currently blending liquidity management with value preservation, as the line between traditional reserves and crypto rapidly disappears.
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