Bank of America, Citi and Goldman Sachs among the banks investigating joint Stablecoin

A group of international banks have said they are working together to issue a stable currency product.

The banks – Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group and UBS – said on Friday that the digital token would be pegged to G7 currencies, according to a statement from BNP Paribas.

The G7 consists of the United States, Canada, France, Germany, Italy, Japan and the United Kingdom.

While the banks’ statement did not directly mention stablecoins, it did say that the project would look at a “1:1 reserve-backed form of digital money” running on a “public blockchain.”

“The aim of the initiative is to explore whether a new industry-wide offering can deliver the benefits of digital assets and increase competition in the market, while ensuring full compliance with regulatory requirements and best practice risk management,” the statement said.

Stablecoins are digital tokens backed by non-volatile fiat currencies such as dollars, euros or yen.

They were previously used almost exclusively by crypto traders to quickly perform transactions, such as buying Bitcoin and other digital assets, without having to use traditional bank rails.

But since then they’ve gone mainstream: big companies love them Meta And Amazonand major banks such as Bank of America, have expressed interest in issuing their own tokens.

And US President Donald Trump in July signed passed the GENIUS Act into law, creating a framework for the issuance and trading of stablecoins.

Stablecoin proponents argue that the tokens are useful for international payments due to their fast and cheap nature.

Analysts from the British bank Standard Chartered this month said commenting that stablecoins could attract $1 trillion in deposits from emerging market banks over the next three years.