Major Banks Collaborate on G7 Currency-Pegged Stablecoin Initiative
Major Banks Collaborate on Stablecoins
- A consortium of major banks, including Bank of America, Citi, Deutsche Bank, Goldman Sachs, and UBS, is exploring stablecoins pegged to G7 currencies.
- This initiative aims to enhance competition and bring digital asset benefits while ensuring compliance.
- The stablecoin market is dominated by Tether (USDT), which represents $179 billion of the $310 billion total market.
- Societe Generale issued a dollar-backed stablecoin but with limited adoption ($30.6 million in circulation).
- Another group of European banks, including ING and UniCredit, plans a euro-denominated stablecoin.
Citi's Ventures in Stablecoins
- Citi invested in BVNK, a company focused on stablecoin infrastructure, with BVNK valued over $750 million.
- Citi's CEO hints at issuing its own stablecoin and exploring digital asset custodian services.
- JPMorgan Chase has launched JPMD, a stablecoin-like token.
Growth in Blockchain Applications
- Banks are examining blockchain technology for reducing transaction costs and enhancing processing speeds.
- Tokenization of traditional assets is being explored, with Bank of New York Mellon and HSBC leading initiatives.
