In a landmark move for traditional finance and blockchain integration, a coalition of major international banks has announced plans to explore the issuance of a 1:1 reserve-backed form of digital money, designed to operate on public blockchains and anchored to G7 currencies.
The goal is to create a stable, regulated digital payment asset that bridges the gap between institutional banking and decentralized infrastructure.
The consortium includes some of the world’s largest financial institutions – Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group, and UBS. According to the joint statement published today, the initiative aims to determine whether such a product could enhance market competition, increase transaction efficiency, and enable broader interoperability between banks, fintechs, and blockchain ecosystems.
Unlike privately issued stablecoins, this project focuses on full reserve backing, ensuring that each digital token is matched 1:1 with fiat reserves. The group emphasized its commitment to strict regulatory compliance and risk management best practices, with ongoing communication between participating banks and regulators in all relevant jurisdictions.
Analysts say this development could signal a major shift in how traditional banks approach digital finance, offering a regulated alternative to stablecoins like USDC and USDT, while maintaining the transparency and speed advantages of blockchain networks. If successful, the project could lay the groundwork for a new class of institutional-grade digital money, potentially setting a new standard for global settlement and cross-border payments.
