CoinDesk reported that 21 global financial institutions, including Citi, Goldman Sachs, and Bank of America, are establishing a joint venture to issue stablecoins. The participating institutions plan to establish the joint venture in the second half of this year and will proceed with the business as soon as the relevant procedures are completed. This project originated from an announcement last October by 10 banks stating they were exploring the possibility of issuing 100% reserve-backed digital payment assets for use on public blockchains. Initially, they plan to issue US dollar-based stablecoins and, in the long term, expand to other G7 currency-based stablecoins, prioritizing the Euro (EUR). The participating institutions plan to provide safe and reliable stablecoin solutions based on bank-level regulatory compliance, governance, distribution networks, and risk management capabilities.
