A coalition of major financial institutions—led by Goldman Sachs Group Inc., Deutsche Bank AG, Bank of America Corp., and Banco Santander—has initiated a collaborative effort to explore the development of blockchain-based digital money. The move signifies another major advancement by traditional banking giants toward integrating cryptocurrency infrastructure within mainstream financial systems.
The nine-member consortium also includes BNP Paribas, Citigroup Inc., MUFG Bank Ltd, TD Bank Group, and UBS Group AG. Together, the institutions aim to assess the feasibility of issuing a digital currency backed by a one-to-one reserve ratio, ensuring full backing with traditional assets. The initial focus will be on G7 currencies such as the US dollar, euro, and yen, with the digital money intended to operate on public blockchains.
Banks Engage Regulators in Digital Currency Discussions
Bloomberg reported that the participating banks are actively engaging regulators and financial supervisors in multiple jurisdictions to establish clear compliance frameworks for the project. The initiative is designed to create a new category of digital money that combines the efficiency and transparency of blockchain technology with the reliability of conventional banking standards.
This development aligns with the broader shift in global finance as more banks adopt blockchain to streamline payments and settlements. Stablecoins—cryptocurrencies pegged to fiat currencies—have gained substantial traction in both corporate and institutional sectors. Traditionally used in crypto trading, stablecoins are now being explored by banks as instruments for faster settlements, improved liquidity management, and lower transaction costs.
Data from DeFillama indicates that the global stablecoin market has reached a valuation of approximately $303 billion, marking a surge of nearly $100 billion in 2025 alone. This reflects the expanding institutional confidence in blockchain as a tool for modernizing cross-border payments and asset transfers.
Regulatory Shifts Accelerate Blockchain Integration
Recent policy developments, particularly in the United States, have further fueled the digital money movement. The enactment of the Genius Act by US President Donald Trump in July has accelerated global regulatory clarity around stablecoins and digital currencies. The legislation has provided a clearer framework for institutions to innovate within the digital finance space while maintaining compliance with financial laws.
Experts view the law as a catalyst for greater institutional engagement in blockchain initiatives, paving the way for traditional banks to embrace programmable and transparent payment infrastructures.
Meanwhile, European financial institutions have also intensified their blockchain efforts. In September, a separate group of nine banks—including ING, UniCredit, and Danske Bank—announced plans to develop a euro-denominated stablecoin compliant with the EU’s Markets in Crypto-Assets (MiCAR) regulation. This “Euro Stablecoin” initiative is expected to launch in the latter half of 2026 and is being positioned as a strategic European alternative to dollar-backed digital currencies.
Traditional Finance Steps Deeper into Blockchain
The formation of this multi-bank consortium underscores the accelerating institutional shift toward blockchain-powered financial systems. By engaging in regulatory dialogue and focusing on compliance from inception, the group aims to establish a reliable digital money framework that could revolutionize global payment efficiency.
If successfully executed, this initiative could bridge the gap between centralized banking systems and decentralized financial technologies, ushering in a new era of secure, interoperable, and programmable digital money designed for global use.
