Tether and Circle Under Threat as Major Banks Plot G7 Currencies Stablecoin

According to a Friday report by Reuters, the crypto stablecoin market is set to welcome new entrants in the coming months as many international banks are working towards issuing stablecoins pegged to G7 Currencies.

The G7 currencies refer to the various fiat currencies among the G7 countries, these are the United States dollar (USD), the United Kingdom’s British pound (GBP), the Canadian dollar (CAD), Japanese yen (JPY), and the Euro (EUR), which France, Germany, and Italy commonly use as a medium of exchange.

Stablecoin for G7 Currencies

Notably, about ten banks, including Bank of America, Santander Bank, Citibank, Barclays, MUFG Bank Ltd, Deutsche Bank, BNP Paribas, Goldman Sachs, TD Bank Group, and UBS, are on this move. 

Highlighting what these financial institutions plan to achieve over time with the latest move to stablecoin issuance, a recent release by BNB Paribas noted,

“The objective of the initiative is to explore whether a new industry-wide offering could bring the benefits of digital assets and enhance competition across the market, while ensuring full compliance with regulatory requirements and best practice risk management.”

Competition for Tether and Circle

Remarkably, the crypto stablecoin market is valued at about $310 billion. The El Salvador-based issuer Tether and U.S.-based Circle account for approximately $253 billion collectively, which is over 80% of the total stablecoin market, leaving other issuers with minimal control over the market.

Following the recent market uptrend, the crypto ecosystem welcomed more investors, leading to a greater demand for stablecoins. These leading issuers seized the opportunity to mint USDT and USDC tokens, gaining more market dominance.

However, following the forthcoming stablecoin launch by major international banks, crypto users in the regions would easily swap their crypto for their local-currency-backed stablecoins and vice versa, thus easing Tether and Circle’s monopoly over the market.

Not the First

Remarkably, the ten banks are not the first of their kind; a multinational French banking Group, Société Générale, tops the list as the first major bank to debut USDCV, a dollar-backed stablecoin, earlier this year. After trading for about three months, only $30.6 million USDCV is in circulation.

Moreover, a September 2025 report by Reuters reveals that nine European banks have also collaborated to issue a euro-denominated stablecoin in the coming months.

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