Banks explore issuing stablecoin pegged to G-7 currencies

Soaring crypto prices, Trump’s support for sector reviving interest in using blockchain

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Ten major banks including Bank of America, Deutsche Bank, Goldman Sachs and UBS are jointly exploring issuing a stablecoin, the latest sign of traditional finance seeking to get to grips with the growth of digital assets.

The group of lenders, which also includes Citi, MUFG, Barclays, TD Bank, Santander and BNP Paribas, will work together to explore creating blockchain-based assets pegged to Group of Seven currencies, the banks said on Oct 10.

The project will explore whether there is value in issuing assets on public blockchains which are pegged 1:1 to real-world currencies — a type of cryptocurrency known as stablecoins.

“The objective of the initiative is to explore whether a new industry-wide offering could bring the benefits of digital assets and enhance competition across the market, while ensuring full compliance with regulatory requirements and best practice risk management,” the banks said.