21 Banks Bet Big on Stablecoins as BIS Chief Questions Their Future in Payments

• Stablecoin adoption is gaining momentum as 21 major financial institutions plan to establish a new company focused on a US dollar-denominated stablecoin
• The stablecoin is targeted for launch in the first half of 2027, with potential use cases including cross-border payments and digital asset settlement
• The stablecoin push from major banks contrasts with the BIS view, as Pablo Hernandez de Cos favors tokenized deposits as a stronger foundation for payments

Stablecoin payments are gaining central attention as leading banks prepare to push stablecoins on a global level. 21 financial institutions, including Bank of America and Citi, have announced plans to form a new company focused on a US dollar-denominated stablecoin. This development has arrived as concerns around stablecoins are also growing. BIS chief Pablo Hernandez de Cos is questioning whether stablecoins should become a major form of payments or not.

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Global Banks’ Stablecoin Push Expands to 21 Institutions

21 leading financial institutions have recently grouped together to form a new company focused on US dollar-denominated stablecoin development. The major members of this group include banks such as Bank of America, Citi, Goldman Sachs, Deutsche Bank, UBS, Wells Fargo, Santander, BBVA, MUFG, and Fidelity Investments. These institutions plan to establish the company by the end of 2026, with the name expected to be announced later.

The initial focus of this company would be US dollar stablecoin development. The group is targeting the launch of the stablecoin in the first half of 2027. The group is also considering diversification plans, extending its focus to stablecoins pegged to other G7 currencies, with the euro identified as the early priority.

This project is an expansion of an earlier announcement, an initiative first mentioned in 2025. That announcement consisted of how 10 banks began exploring a reserve-backed digital money product that could operate on public blockchains.

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The Intent Behind This Stablecoin Development Activity

The banks are positioning the launch of this project directed towards wholesale and institutional clients, while retail applications could also emerge depending on the market. It is not being positioned solely as a crypto product.

Potential applications include cross-border payments and settlement of digital assets. Blockchain-based transactions could provide faster movement of funds between participants.

The group also mentioned how this project aims to meet the requirements of the US GENIUS Act and Europe MiCA rules where applicable. The regulatory focus is important as the banks are now entering a market currently dominated by crypto-focused stablecoin issuers.

Stablecoin-Centric Criticism Continues To Grow

The banking industry’s growing interest in stablecoins is now contrasting with the latest comments made by the BIS chief, Pablo Hernandez de Cos. The general manager of the BIS argued how stablecoins have not yet demonstrated the qualities needed to become money on a large scale.

While he recognizes that they can support faster payments, he argued that stablecoins still face structural challenges that limit their ability to function as money at scale.

Hernandez de Cos was also quick to outline how limited the role stablecoins are currently playing in the real economy. He emphasized how much of their role is closely tied to crypto markets. He also pointed out that stablecoin payment-related activity reflects only a fraction of the traditional market payments.

This development shows a clear contrast in how major banks and policymakers are viewing the future of stablecoins. Banks are moving toward wider adoption while the BIS favors tokenized deposits as a stronger foundation for payments.

He later shared how he favours tokenized bank deposits as opposed to stablecoins, stating them as a better option. 

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