Bank of America, Citi, Goldman Sachs, UBS, and 17 other financial institutions joined forces to establish a joint stablecoin company on September 1, 2026. The dollar-pegged token is scheduled to launch in the first half of 2027 as an initial step before expanding to euro-pegged tokens.
The joint venture brings together participants from three global regions. North America accounts for the largest share, featuring Bank of America, Citi, Goldman Sachs, Fidelity, Capital One, Wells Fargo, PNC, Scotiabank, TD Bank, and WisdomTree. Europe is represented by Santander, BBVA, Commerzbank, Crédit Agricole, Deutsche Bank, Lloyds, Rabobank, and UBS. Meanwhile, from Asia and other regions, MUFG Bank, Sirius International, and Standard Bank have joined the consortium.
The Loophole Behind the Interest Ban
As licensed entities, the participants are directly bound by the provisions of the GENIUS Act. The law prohibits stablecoin issuers from paying yield to token holders. However, Katana CEO Matt Fisher sees an operational loophole once tokens move to independent protocols.
“The GENIUS Act stops issuers from paying yield; it doesn’t stop holders from putting dollars somewhere the issuer doesn’t control,” Fisher said, explaining the remaining room to maneuver for token holders.
When these bank-issued stablecoins enter the DeFi ecosystem, the source of yield shifts. Interest will no longer come from the issuer, but will instead be earned through overcollateralized lending activities or from market makers.
Targeting Idle Corporate Cash
Capital inflows into DeFi have the potential to be drawn from companies that leave their cash idle. A 2026 Jiko survey of 192 treasury professionals captured this pattern: nearly half of respondents leave more than 10% of their cash idle. In fact, 23% of respondents reported that more than a quarter of corporate cash is constantly kept idle.
To date, no technical details have been publicly announced. The entity and token names, blockchain selection, governance structure, custodians, and token redemption terms have not yet been disclosed by participants.
The Choice in Holders’ Hands
With the absence of issuer-side protections when tokens enter DeFi, holders must weigh their moves independently. Depositing stablecoins into independent protocols means bearing individual risk, and any losses will not be covered by banks.
Corporate treasury managers are left with two options: hold tokens safely under bank supervision without yield, or seek interest beyond the banks’ reach by shouldering the risk themselves.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
