21 global financial firms plan joint venture for dollar stablecoin

Twenty-one global financial institutions, including Citi, Goldman Sachs and Bank of America, plan to establish a joint venture to issue stablecoins, CoinDesk reported. The participating firms plan to set up the venture in the second half of this year and move ahead with the business once related procedures are completed. The project began after 10 banks announced on Oct. 10 last year that they would examine the feasibility of issuing a fully reserved digital payment asset for use on public blockchains. The venture plans to initially issue a U.S. dollar-denominated stablecoin and later expand to stablecoins based on other G7 currencies, with the euro taking priority. The firms plan to offer a safe and reliable stablecoin solution built on bank-level regulatory compliance, governance, distribution networks and risk management capabilities.