Key Takeaways
- Nine major banks formed a consortium to explore issuing reserve-backed digital money on public blockchains.
- The initiative aims to provide a stable payment asset and enhance financial innovation in cross-border payments.
Nine major international banks have formed a consortium to explore issuing reserve-backed digital money on public blockchains, Bloomberg reported on Friday. The effort underscores the accelerating push by traditional finance toward blockchain-driven payment systems.
The group includes Goldman Sachs Group Inc., Deutsche Bank AG, Bank of America Corp., Banco Santander, BNP Paribas, Citigroup Inc., MUFG Bank Ltd., TD Bank Group, and UBS Group AG.
The banks said in a statement today that they will explore developing a 1:1 reserve-backed form of digital money designed to offer a stable payment asset on public blockchains, centered on G7 currencies.
The consortium is also coordinating with regulators and supervisors in relevant markets while evaluating whether the offering could enhance competition and deliver digital asset benefits.
Banks are increasingly exploring stablecoins as efficient, low-cost payment tools. New regulatory clarity in the US and EU is accelerating institutional efforts to integrate blockchain into mainstream finance.
Last month, nine major European banks, including ING, Banca Sella, and Danske Bank, formed a partnership to develop a MiCAR-compliant euro-denominated stablecoin. The stablecoin is set for release in late 2026 and aims at facilitating instant, cost-effective payments and improving digital asset settlements.
Source: https://cryptobriefing.com/reserve-backed-digital-money-consortium/
