Banks explore launching a stablecoin linked to G7 currencies

The group of banks said the stablecoin initiative would explore the “benefits of digital assets” in bringing new products to the market.

A group of banks is in the process of exploring the launch of stablecoins focused on some of the world’s biggest fiat currencies, including the US dollar, euro and Japanese yen.

According to a Friday statement from BNP Paribas, banks including Bank of America, Goldman Sachs, Deutsche Bank and Citi said that they had launched a project to explore the “issuance of a 1:1 reserve-backed form of digital money that provides a stable payment asset available on public blockchains” linked to currencies from the Group of Seven (G7) countries: the United States, Canada, the United Kingdom, France, Germany, Italy and Japan.

 “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,” said the banks.

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