There is also a strategic benefit. A payment company with its own stablecoin could connect merchant settlements, cross-border payouts and customer balances within a single infrastructure.
This could reduce dependence on external settlement providers and improve liquidity management.
However, distribution will be critical. Issuing a stablecoin is relatively straightforward compared with convincing businesses to hold and use it.
I expect payment companies with established merchant networks and strong distribution to have an advantage. Their existing customer relationships could help them turn stablecoins into practical payment products.
Q. Why are banking consortia in the U.S. and Europe developing stablecoins, and how could they compete with existing issuers?
- Banks are increasingly concerned about losing payment flows and customer balances as stablecoin adoption grows.
In Europe, Qivalis has brought together 37 financial institutions across 15 countries to develop a regulated euro stablecoin.
Meanwhile, a separate global consortia of 21 financial institutions, including Bank of America, Citi, Goldman Sachs and Wells Fargo, announced plans in September 2026 to launch a U.S. dollar stablecoin in the first half of 2027, with euro issuance also a priority.
These initiatives could allow banks to offer around-the-clock settlement while retaining their role in managing customer funds.
I see the biggest opportunity in institutional payments and tokenized asset settlement, where banks already have established customer relationships and payment infrastructure.
