Bank of America, Citi and Goldman Sachs Among Banks Exploring Joint Stablecoin

Core Viewpoint - A coalition of international banks is collaborating to explore the issuance of a stablecoin product pegged to G7 currencies, aiming to enhance competition and compliance in the digital asset market [1][2]. Group 1: Bank Collaboration - The participating banks include Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group, and UBS [1]. - The initiative focuses on a "1:1 reserve-backed form of digital money" operating on a "public blockchain" [2]. Group 2: Stablecoin Definition and Usage - Stablecoins are digital tokens backed by stable fiat currencies, previously used mainly by crypto traders for quick transactions [3]. - Major companies and banks, including Meta and Bank of America, are showing interest in issuing their own stablecoins [3]. Group 3: Regulatory Framework and Market Impact - The GENIUS Act, signed into law by U.S. President Donald Trump, establishes a framework for stablecoin issuance and trading [4]. - Analysts predict that stablecoins could attract $1 trillion in deposits from banks in emerging markets over the next three years, highlighting their potential for international payments due to speed and low cost [4].