- Ten major banks, including Banco Santander, are exploring a fully reserved stablecoin.
- The token would be backed 1:1 by a basket of key G7 currencies and run on public blockchains.
- Participants say the aim is to test industry-wide benefits while adhering to risk and compliance standards.
- Details like launch timeline and exact currency basket composition remain under evaluation.
A coalition of ten leading financial institutions — with Banco Santander among them — has begun to explore the launch of a fully reserved digital token tied to major G7 currencies. In a joint statement, the group said the work aims to assess whether an industry-grade stablecoin could deliver efficiencies and increase competition across payments while meeting regulatory expectations.
Although still at an early stage, the prospective coin would be backed on a one-to-one basis by a basket of widely used currencies, and it is intended to operate on public blockchain networks. The banks emphasized that they are in active dialogue with relevant authorities to ensure compliance and robust risk management from day one.
Who is involved
The initiative brings together a roster of global players. According to the statement, participating institutions include Banco Santander alongside several large North American, European and Asian peers, reflecting a cross-border push to test tokenized money in practical payment flows and institutional-grade use cases.
- Banco Santander
- Bank of America
- Barclays
- BNP Paribas
- Citi
- Deutsche Bank
- Goldman Sachs
- MUFG Bank
- TD Bank
- UBS
How the stablecoin would work
The proposed design centers on full reserves and a currency basket aligned with key G7 units such as the US dollar, euro, Japanese yen, British pound and Canadian dollar. While final composition has not been disclosed, the intent is clear: maintain a 1:1 link to underlying fiat so that the token’s value remains stable and fit for settlement in day-to-day transactions.
By operating on public blockchains, the instrument would seek to combine transparency and programmability with institutional safeguards. The group is evaluating issuance, redemption, and on-chain controls to support functions like real-time transfers, straight-through reconciliations, and interoperable payment rails between participants.
Goals and potential benefits
The banks describe the project as an industry assessment rather than a market-ready launch. The goal is to understand whether a shared, fully backed token can streamline cross-border payments, speed up settlement cycles and lower friction for corporate and financial flows — all while maintaining strong governance and oversight.
Areas under exploration include programmable payments for business workflows, improved treasury mobility across time zones, and integration with tokenized assets. Any rollout would hinge on aligning technology, risk frameworks and legal structures to satisfy supervisory expectations across jurisdictions.
Regulatory engagement and next steps
The consortium said it is maintaining ongoing discussions with regulators and market supervisors in relevant regions. That engagement covers reserve management, consumer protections, financial stability considerations and operational controls — the building blocks for a compliant, institution-ready token.
No launch date has been announced, and key variables — including final currency mix, network selection and governance model — remain under review. The banks noted that they will continue to test design options and consult with authorities before deciding whether to move from evaluation to implementation.
If the initiative advances, it would signal a coordinated push by major institutions to bring tokenized cash instruments into mainstream financial workflows, guided by full-reserve backing, standardized controls and public-chain transparency.
