Wall Street is now racing to control the $1.9T stablecoin shift to avoid losing its customer base
Standard Chartered estimated in January that stablecoins could pull about $500 billion from US bank deposits by the end of 2028.
Regional banks looked especially exposed given how much they depend on the spread between what they pay depositors and what they earn on loans.
Now, 21 major financial institutions, including Bank of America, Citi, Goldman Sachs and Wells Fargo, committed Sept. 1 to build one.
The group announced plans to establish a company in the second half of 2026, launch a US dollar-denominated stablecoin in the first half of 2027, and comply with both the GENIUS Act and MiCA.
The venture started as a 10-bank exploration into reserve-backed digital money in October 2025 and has since grown to 21 institutions spanning North America, Europe, Asia, Africa, and the Middle East.
Its stated use cases include wholesale and institutional activity, cross-border payments, digital-asset settlement, and retail markets where client benefits can be achieved.
| Earlier bank concern | Sept. 1 bank response |
|---|---|
| Stablecoins could pull deposits out of banks | 21 institutions committed to launch a bank-backed stablecoin |
| Regional banks could be exposed to funding pressure | Large banks are positioning to capture stablecoin flows |
| Crypto platforms could compete for customer cash | Banks are creating their own digital-dollar product |
| Stablecoins could redirect reserves into Treasuries | Banks may seek a role in reserve management and distribution |
| Payments could move outside bank rails | Banks want stablecoins for cross-border payments, settlement and institutional activity |
Why deposits and stablecoins compete for the same dollar
Bank deposits fund lending and balance-sheet activity, with banks earning income on the spread between what they pay depositors and what they collect on loans.
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