Banking Sector, Goldman Sachs-led Issuance of Proprietary Stablecoin... Former Ripple Executive: "A Predicted Outcome"

▲ Dollar (USD), Stablecoin, Artificial Intelligence (AI)/AI Generated Image

As a consortium of global major banks, including Goldman Sachs, pushes for the issuance of their own stablecoins, a former senior executive at Ripple pointed out the traditional financial sector's insular behavior.

According to crypto media outlet U.Today on August 26 (local time), a consortium of 21 global banks led by Goldman Sachs and Japan's MUFG Bank officially announced plans to launch their own US dollar-based stablecoin. In response, Emi Yoshikawa, former VP of Strategic Initiatives at Ripple, remarked on X (formerly Twitter), "I have a sense of déjà vu" and "It was always going to go this way." This assessment highlights Wall Street's predictable moves, based on her experience leading institutional business expansion in Asia at Ripple from 2016 to 2024.

Yoshikawa's reaction targets the typical business pattern of the traditional financial sector. For years, major global banks have actively explored external blockchain technologies. However, instead of joining open public networks like the XRP Ledger, they ultimately built closed systems that they could directly control. The intention is to keep liquidity, regulatory compliance, and transaction fees entirely under the internal control of financial institutions.

MUFG Bank, a participant in the dollar project, is also simultaneously running a domestic Japanese project. MUFG Bank, along with SMBC and Mizuho Bank, plans to launch yen-based stablecoin payments by March 2027. The vision is to process both yen and dollar exchange and payments within a controlled bank blockchain network based on their self-developed platform, Progmat.

The payment market targeted by the banking consortium directly overlaps with areas already pioneered by regulated stablecoins such as Ripple's RLUSD. RLUSD has surpassed a market capitalization of $2 billion, with over $1 billion issued on the XRP Ledger alone. In June, it also secured approval from the Japan Financial Services Agency (JFSA). Consequently, a divided landscape is expected to form, where bank consortium tokens are limited to internal payments between large corporations and banks, while RLUSD and USDC dominate open fintech and decentralized finance markets.

While acknowledging the usefulness of blockchain payments, Yoshikawa did not hide her skepticism regarding the governance issues of the 21 major bank consortium. She pointed out that while a consortium involving 21 stakeholders struggles to agree on internal regulations before its 2027 launch, existing independent stablecoins could maintain their first-mover advantage.

[Article Key Summary]

-21 global banks, including Goldman Sachs and MUFG Bank, have launched their own dollar stablecoin consortium.

-A former Ripple VP criticized Wall Street's old practice of excluding public blockchains and opting for controlled, closed networks.

-Due to the complex governance coordination among the 21 banks, existing stablecoins like RLUSD may maintain their first-mover advantage.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*