Twenty-one financial institutions, including Bank of America, Citi, Goldman Sachs and Wells Fargo, committed on September 1 to create a company to issue a US dollar-backed stablecoin in the first half of 2027, in compliance with the GENIUS Act and MiCA. Citi projects stablecoin issuance reaching $1.9 trillion by 2030, versus approximately $303.7 billion today, with a bull case of $4 trillion. Standard Chartered estimated in January that stablecoins could withdraw $500 billion from US bank deposits by end of 2028, particularly exposing regional banks. Banks are willing to cannibalize some traditional deposits to retain customer relationships, settlement fees and reserve revenues, but will need to prove they can attract the liquidity, listings and actual demand required to compete with USDT and USDC.
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