Bank of America Joins 21-Bank Group Planning a 2027 Dollar Stablecoin

Bank of America Corporation (NYSE:BAC) is among 21 financial institutions — alongside The Goldman Sachs Group, Inc. (NYSE:GS) — planning to launch a U.S. dollar-backed stablecoin in the first half of 2027. The banks are expected to create a joint company to issue the stablecoin, with plans to eventually expand into other G7 currencies, including the euro.

The initiative reflects growing interest among traditional banks in blockchain-based payments and could help them compete with established stablecoin issuers. For BofA, the project fits with its large payments and commercial-banking operations: if companies increasingly use stablecoins to move money across borders, the bank could integrate the technology into its existing corporate and institutional relationships, and participating from the start lets it help shape the infrastructure rather than cede it to fintech or crypto firms.

The opportunity, however, is still developing. Reuters noted that existing bank-issued stablecoins have seen limited adoption, while established players such as Tether continue to dominate the market. Reuters reported that Societe Generale's dollar-backed stablecoin had only around $12.5 million in circulation, compared with more than $180 billion for Tether. That means the project could take years to become financially meaningful for participating banks.

The same technology could eventually pressure BofA's traditional deposit business if customers shift significant amounts of money out of conventional deposits and into stablecoins. Investors should not view the planned 2027 launch as a major near-term earnings catalyst; the critical question is whether businesses and financial institutions actually adopt the stablecoin at scale.