The largest international banks have announced a joint initiative to develop stablecoins backed by reserves and pegged to the currencies of the G7 countries.
The project aims to explore how digital forms of money can increase settlement efficiency and stimulate competition in the global financial market.
Banks Prepare an Alternative to Private Issuers
In an official statement, the project participants emphasized that their goal is to study the possibility of issuing digital assets fully backed by fiat reserves on a one-to-one basis. Such tokens are intended to become “stable payment instruments” that can be used on public blockchains.
The project covers the currencies of the USA, Canada, UK, France, Germany, Italy, and Japan, meaning it is about creating a system capable of becoming a supranational digital settlement infrastructure.
The banks emphasize that the new initiative will be implemented in strict accordance with regulatory requirements and risk management principles.
According to consortium representatives, this form of digital money will combine the reliability of banking assets with the technological advantages of blockchain, creating new opportunities for international payments, trade, and corporate operations.
GENIUS Act Opens the Way for Bank Tokens
The project coincided with the entry into force of the GENIUS Act—a law regulating stablecoins, signed in July by President Donald Trump. The document introduces unified standards for the issuance of tokens backed by fiat currencies and effectively legalizes the use of stablecoins in the US.
Although the law has already been adopted, its provisions will only take effect in 15 months, after the final rules are approved by the Treasury Department and the Federal Reserve. This transition period has given banks the opportunity to develop their own digital asset models, test technologies, and establish interaction with regulators.
Why Banks Decided to Act Now
In recent years, the stablecoin market has been almost entirely controlled by private companies. Tether (USDT) and Circle (USDC) hold a dominant position with a combined capitalization of over $250 billion.
However, banks see risks in this—both for financial stability and for their own role in the monetary system. In their statement, the banks note that they want to “return control over the issuance of digital currencies to the framework of a regulated banking environment,” where assets will be backed by real reserves and subject to existing audit and reporting standards.
Analysts believe that the G7 initiative may be a response to the growing influence of private stablecoins, especially in the context of cross-border settlements and corporate payments.
Market Reaction and Controversial Points
The adoption of the GENIUS Act has caused a mixed reaction. The crypto industry saw the law as a step forward, but the banks themselves pointed out gaps in regulation, especially regarding interest-bearing stablecoins.
Financial institutions fear that such tokens could pull deposits out of the banking system, weakening traditional lending mechanisms.
Potential Competition with Tether and Circle
If the banks’ project develops, it could become the first international alternative to Tether and Circle, offering users a fully regulated form of digital currency.
The main difference is that these stablecoins will be issued by licensed financial institutions with strict obligations to regulators.
This format could increase the trust of large corporations and government entities, which are currently wary of stablecoins from private issuers.
According to experts, bank digital currencies could become a next-generation tool, connecting traditional finance with Web3, as well as a foundation for future CBDCs (central bank digital currencies).
What’s Next?
The initiative of the largest G7 banks could change the balance of power in the digital asset market. If testing is successful, bank stablecoins backed by the dollar, euro, and yen may appear in the coming years, marking an important step toward integrating blockchain into the global financial system.
The project could also accelerate the global transition to tokenization of liquid assets, including bonds, equity instruments, and government reserves. For the first time in a long while, it is the banks—not startups—who are staking a claim for leadership in the world of digital money.
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