# Global Banks Join Forces to Explore 1:1 Reserve-Backed Digital Currency

*Author: Bankless*
*Published: Oct 10, 2025*
*Source: https://www.bankless.com/read/news/global-banks-join-forces-to-explore-1-1-reserve-backed-digital-currency*

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Some of the world’s largest financial institutions are collaborating on an initiative to issue a new form of digital money backed 1:1 by bank reserves and available on public blockchains. The effort marks a coordinated move by major banks to enter stablecoin markets at scale.

### What’s the Scoop?
- **Institutional Stablecoin Exploration:** The group — including Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group, and UBS — is studying the feasibility of issuing a reserve-backed digital asset focused on G7 currencies.
- **Regulatory Alignment:** The banks said the project is designed to “enhance competition across the market while ensuring full compliance with regulatory requirements and best practice risk management,” positioning it as a compliant alternative to crypto-native stablecoins.
- **Public Blockchain Ambition:** The proposed digital reserves would exist on public blockchains, creating a transparent, interoperable settlement layer for institutional and retail transactions alike.
- **Market Context:** The global stablecoin market, currently led by Circle’s USDC and Tether’s USDT, sits near $290 billion in circulating supply. The recently adopted GENIUS Act allows stablecoin issuers to reserve dollar-pegged tokens with bank reserves.

> A group of international banks including Goldman Sachs, Deutsche Bank, Bank of America and Banco Santander, have joined forces to explore the issuance of “digital money” on public blockchains [https://t.co/sZwfextkeU](https://t.co/sZwfextkeU)— Bloomberg (@business) [October 10, 2025](https://twitter.com/business/status/1976659127834181787?ref_src=twsrc%5Etfw)
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