Banking sector transformation: 21 major financial institutions plan stablecoin company launch in 2027

Over the past decade, stablecoins sat firmly outside the perimeter of the traditional banking system. Regarded as instruments exclusively for the cryptocurrency ecosystem, they were mainly considered useful within digital-asset markets but not sufficiently regulated for traditional banking. That stance has begun to soften, with some regions even enthusiastically embracing the technology.

According to information from TradingView, 21 major banks including Goldman Sachs, Citi, and Bank of America are planning to establish a stablecoin company in 2027, backed by G20 support. This is the clearest signal yet that stablecoins are moving from crypto debate to real-world payments use cases.

Background: Stablecoin growth surges

According to figures from DeFi Llama, the circulating stablecoin supply now exceeds $300 billion, up more than 40% from the supply a year ago. Market analyst projections forecast supply levels rising to $2-4 trillion by the end of the decade, underscoring the growth trajectory that could be unleashed if they were brought into mainstream usage.

In Europe, stablecoins are set to “enter the mainstream” of the region’s financial system this year, according to S&P Global. “The digital tokens, which are often pegged one-to-one with currencies, promise greater stability than unbacked crypto assets yet retain many of the same benefits—speed, low costs, and traceability,” the US rating firm explained in a February 3 report.

S&P Global has projected European stablecoin issuance and use to grow rapidly from this year onwards. “By 2030, we forecast the total value of euro-pegged stablecoins will be between €25 billion and €1,100 billion (equivalent to 0.1% to 4.2% of eurozone banks’ overnight deposits), up from a current level of about €650 million.”

GENIUS Act: A legal turning point

In the United States, the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) has played a pivotal role in calming some of the regulatory concerns that banks have long held about stablecoins. The law mandates that stablecoin issuers, including banks, back their assets one-for-one with high-quality liquid assets such as US currency, insured bank deposits, or Treasury securities with maturities of 93 days or less.

While banks are no longer dismissing stablecoins outright, neither have they fully embraced them—at least not in the United States. Arguably, the most significant reason for this hesitancy is lenders’ concerns that stablecoins could erode their deposit bases by reducing low-cost deposit funding and increasing reliance on wholesale markets.

The battle between traditional banks and crypto-native firms

Adoption thus remains uneven and constrained. Most large banks are not issuing public, freely circulating stablecoins; rather, they continue to experiment with permissioned tokens for interbank settlement, liquidity management, cross-border corporate payments, and collateral movement.

An analysis by Standard Chartered’s global head of digital assets research, Geoff Kendrick, warned that US-dollar stablecoins could trigger $500 billion in deposits to exit US banks by the end of 2028. “US banks…face a threat as payment networks and other core banking activities shift to stablecoins,” Kendrick stated in the research note. “We find that regional US banks are more exposed on this measure than diversified banks and investment banks, which are least exposed.”

Crypto firms argue that stablecoins boost efficiency and inclusion, but banks counter that payment systems require oversight, resilience, and balance-sheet capacity that only regulated institutions can provide. “The bank lobbying groups and bank associations are out there trying to ban their competition,” Brian Armstrong, Coinbase’s chief executive officer, said at the recent World Economic Forum (WEF) in Davos, Switzerland. “I have zero tolerance for that. I think it’s un-American, and it harms consumers.”

Federal Reserve: Challenges and opportunities

The Federal Reserve has noted both distinct challenges and opportunities for banks due to the rise of stablecoins. While their growth does not spell the end of the prevailing banking model, the Fed recently argued it could expedite shifts in financial intermediation, including changes in deposit and funding costs, evolving patterns of credit provision, and new dynamics in payment services.

“The ultimate trajectory will depend on how regulatory frameworks evolve, how effectively banks adapt, and whether stablecoins transition from niche speculative instruments to widely adopted payment and settlement tools,” a Fed paper published on December 17 contended, also recommending that banks move proactively, particularly those with “the scale, technological capacity, and regulatory expertise” to manage stablecoin participation to both offset potential disintermediation and develop new revenue streams and customer-engagement models.

Perspectives for Vietnam and Japan markets

For Vietnam, where remittances exceed $17 billion annually, the issuance of stablecoins by major banks could revolutionize cross-border money flows. Instead of losing 3-5% in fees through correspondent banking and waiting 3-5 days, recipients could receive funds in minutes at significantly lower cost.

In Japan, where major banks like MUFG and SMBC are already actively exploring digital assets, the trend of 21 banks establishing stablecoin companies provides a clear blueprint. Japanese banks could lead in issuing yen-pegged stablecoins, serving both domestic markets and cross-border payments in the Southeast Asian region.

Conclusion

The plan by 21 major banks including Goldman Sachs, Citi, and Bank of America to establish a stablecoin company in 2027 marks a historic turning point. Stablecoins are no longer tools exclusively for the crypto ecosystem but are becoming part of mainstream financial infrastructure.

However, the battle between traditional banks and crypto-native firms over control of the future of digital payments is far from over. The question is no longer “will stablecoins become mainstream?” but rather “who will control this infrastructure?”

For businesses operating across borders, this represents an opportunity to optimize treasury management, reduce costs, and accelerate settlement. But it also comes with challenges around regulatory compliance and competitive dynamics that financial institutions must face.

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Source: Combined from G20 Backs Digital Assets Growth – Goldman Sachs, Citi, BofA Among 21 Banks Planning To Launch Stablecoin Company In 2027 — TradingView/Reuters, September 2026; Is the Banking Sector Now Warming to Stablecoins? — International Banker, September 2026