Goldman Sachs, Bank of America, and 21 Other Giants Dive Into Stablecoins: Team Up to Issue Tokens and Challenge the Entrenched Dominance of Tether and Circle?

Author: Claude, TechFlow

TechFlow Summary: On September 1, an unprecedented alliance was formed among 21 traditional financial giants including Goldman Sachs, Bank of America, and Citigroup, announcing plans to launch a US dollar stablecoin by 2027. Upon the news, Circle's stock price dropped 6.35% overnight. However, can Wall Street's "main force" truly shake the ironclad monopoly of the crypto-native market? Looking back at Société Générale's high-profile entry earlier this year, its issued USDCV has been live for nearly a year yet boasts a dismal circulating supply of only $12.6 million. Facing the extremely high barriers of the crypto market and complex negotiations over compliance checkpoints, this prestigious financial alliance may ultimately prove to be all noise and no follow-through.

Why Is JPMorgan Specifically Omitted from the Coalition of 21 Institutions Launching a Token?

On September 1, a joint statement released by Brunswick Group sent shockwaves through both traditional finance and the crypto sector: 21 top-tier financial institutions have decided to join forces and plan to establish a joint venture dedicated to issuing stablecoins in the second half of 2026.

According to the current blueprint, the coalition's inaugural product will be a US dollar stablecoin slated for release in the first half of 2027, with subsequent expansion into G7 currencies such as the euro, directly targeting the cross-border payments and digital asset settlement markets. Strikingly absent from this list of giants spanning five major regions—including Goldman Sachs, Citigroup, UBS, and Deutsche Bank—is JPMorgan, the so-called King of Wall Street. Given that JPM Coin is already fully operational within its internal settlement network, JPMorgan clearly has no intention of sharing its slice of the pie with this massive consortium.

Targeting “Interest-Free Capital”: The Stablecoin Printing Press That Wall Street Covets

Why are traditional banks forming coalitions so densely at this moment? The answer lies in the staggering balance sheets of Tether and Circle.

Under the current stablecoin business model, issuers absorb user fiat currency as reserves, invest them in high-interest Treasury bonds, and pay virtually zero interest to users holding the stablecoins. This “legally prohibited-to-pay money” has evolved into a remarkably profitable risk-free printing press in today's high-rate environment. Watching stablecoin issuers generate net profits surpassing many Wall Street investment banks with minimal staff, these 21 financial titans could obviously no longer stand idly by and are attempting to secure this most lucrative profit territory through their alliance.

A Grim Precedent: Can a Compliance Coalition Disrupt the Crypto-Native Monopoly?

However, does entering the arena under the halo of Wall Street automatically purchase liquidity in the crypto market?

Looking back at the first report card for “bank-issued stablecoins,” reality is stark. Previously, Société Générale made headlines with the launch of its stablecoin USDCV. Despite the credit backing of a top European bank, nearly a year after going live, its circulating supply languished at a mere $12.6 million. In the trading habits of crypto natives, Tether (USDT) and Circle (USDC) have long built profoundly deep liquidity moats. Faced with the integration inertia of DeFi protocols and the exchange listing hegemony, compliant stablecoins issued by Wall Street that offer nothing more than “enhanced compliance” will very likely devolve into self-satisfied internal settlement tools for traditional institutions.

The Battle for July 2028: The Final Window Before the Great Reshuffle

The window of opportunity for this coalition is narrowing. According to the current regulatory countdown, July 18, 2028, will serve as a critical checkpoint for US platforms to comprehensively clear out a batch of non-compliant stablecoins.

From a dismal trial run of $12.6 million to the vast market volume exceeding hundreds of billions of dollars, what lies in between is not merely the compliance crucible of July 2028, but also a brutal head-to-head clash between traditional finance and Web3 native capital. When the 21 giants finally push their product to market in 2027, they will confront a red ocean that has already been carved up by native titans and where liquidity is extremely concentrated. Will this grand coalition be the terminus that reshapes the stablecoin landscape, or merely another traditional finance experiment doomed to fail due to poor adaptation? The market will soon deliver its verdict through pricing.