- Ten major global banks plan to issue digital tokens backed by reserves for use on public blockchains.
- The tokens will support payments in currencies of G7 countries using stable assets.
- The initiative aims to enhance competition and adopt regulatory compliance and risk management practices.
- The participating banks are classified as global systemically important banks (G-SIBs).
- The project explores industry-wide options for digital assets to improve payment systems.
Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank Group, and UBS have announced plans to launch digital money tokens backed by reserves. These tokens will enable payments on public blockchain networks using currencies from G7 nations.
The banks participating in this project are all classified as global systemically important banks (G-SIBs). Their goal is to offer a new form of digital money that provides stability for transactions on public blockchains. The announcement, shared through a statement via BNP Paribas, did not specifically use the term “stablecoin” but highlighted the focus on “stable” assets.
“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 group said. This marks a collective approach to examining how digital money can be integrated within existing financial regulations.
These tokens are designed to be backed 1:1 by reserves, ensuring their value remains stable relative to the underlying currency. This structure aims to facilitate secure payments and reduce risks commonly associated with digital assets on blockchain platforms.
The initiative reflects growing interest among global banks to engage with blockchain technology while addressing regulatory and market challenges. By creating reserve-backed digital money tokens, these banks seek to improve payment efficiency and competition while maintaining rigorous oversight.
Further details on the tokens’ implementation, timing, and use cases were not disclosed at this stage. The collaborative effort represents a strategic step toward bridging traditional banking with blockchain-enabled digital payments.
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