Ten major international banks have formed a consortium to evaluate the launch of a reserve-backed digital currency, pegged to G7 currencies and designed to be used on public blockchains.
The group of banks includes Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group and UBS.
BNP Paribas said that the digital currency will provide a stable payment asset available on public blockchains,focused on G7 currencies.
G7 currencies include those issued in the US, Canada, UK, Germany, France, Italy and Japan.
The aim of the initiative is to assess whether a new sector-wide offering could deliver the benefits of digital resources and strengthen competition in the market while ensuring full compliance with regulatory requirements and risk management practices.
The group is already in contact with the regulatory and supervisory authorities in each market concerned, explained BNP Paribas. The bank added that it will continue to release updates as the project progresses.
The move comes after it was announced last month that nine European banks were teaming up to launch a euro-denominated digital stablecoin. https://www.fstech.co.uk/fst/Nine_banks_team_up_to_launch_a_euro_denominated_digital_stablecoin.php?utm_source=jsrecent
ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank and Raiffeisen Bank International confirmed that they are collaborating on the launch of a digital payment instrument that will leverage blockchain technology, with the official release expected in the second half of 2026.
The initiative will also see the banks establish a new company in the Netherlands, with the aim of obtaining a licence and supervision from the Dutch Central Bank as an electronic money institution.
In September, The European Central Bank (ECB) announced plans to conduct a second round of digital euro experiments next year, building on the findings of its initial innovation platform.
The move signals growing momentum for the digital euro project, which could see the currency rolled out as early as mid-2029, according to ECB executive board member Piero Cipollone.
The ECB’s first innovation platform, launched in October 2024, brought together nearly 70 market participants, including merchants, FinTech firms, banks, and academics, to explore the digital euro’s potential.
The initiative featured two workstreams: “visionaries,” who focused on conceptual ideas, and “pioneers,” who tested technical applications. Both groups highlighted the importance of harmonised standards and shared infrastructure for the digital euro’s scalability and reliability across the euro area.
Meanwhile, major financial firms across the world have been recently focusing on boosting blockchain innovation.
In the Middle East, Dubai-based digital start-up ecosystem Ignyte and cryptocurrency exchange Binance have recently signed an agreement which aims to accelerate blockchain innovation in the Middle East and North Africa (MENA) region.
Earlier this month, the companies said the alliance will lead to the creation of a platform dedicated to blockchain and crypto innovation, designed to boost their adoption in the regional financial industry while empowering entrepreneurs in the field.
