Bank of America, Citi and Goldman Sachs are among the banks researching common stablecoins.

A group of international banks including Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank Group, and UBS are collaborating to research the issuance of a form of “digital currency backed 1:1 by reserves,” according to a statement from BNP Paribas on Friday.

This product will be pegged to the currencies of the G7 group — including the US, Canada, France, Germany, Italy, Japan, and the UK. Although it does not directly mention stablecoins, the project is described as operating on a “public blockchain,” fully complying with legal regulations and risk management standards.

The goal of the initiative is to assess the ability to create a digital currency model that provides the benefits of digital assets while enhancing competitiveness in the global financial system.

Stablecoins are digital tokens backed by stable fiat currencies such as USD, EUR, or JPY, which were primarily used in cryptocurrency transactions in the past, but are now being considered for issuance by major corporations like Meta, Amazon, and even Bank of America.

Earlier, President Donald Trump signed the GENIUS Act in July, establishing a legal framework for the issuance and trading of stablecoins in the US.

According to analysis from Standard Chartered, stablecoins could attract up to $1 trillion in deposits away from banks in emerging markets within the next three years, despite new regulations restricting direct interest payments.