Ten of the world’s largest banks plan to launch reserve backed digital money tokens to enable payments on public blockchains in G7 currencies. The banks include Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank Group and UBS. All are classed as global systemically important banks (G-SIBs).
While the announcement didn’t use the term “stablecoin”, the purpose is to make public blockchain payments using “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 in a statement via BNP Paribas.
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