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Good morning.
Traditional finance just made its clearest move yet into stablecoins. Twenty one of the world’s largest banks, from Citi to Goldman Sachs to UBS, are pooling resources for a joint venture that treats dollar tokenization not as a threat to defend against but as infrastructure worth owning outright. It is a telling shift: the same institutions that spent years watching Tether and Circle capture the stablecoin market are now building their own rails, and Circle’s stock slide on the news suggests investors already see who this is aimed at.
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In Today’s Edition:
**Headline:Banks Launch Joint Stablecoin VentureQuick Bites:Ethena Pushes Stablecoins Into BankingYield of the Week:**sky.money USDT Risk Capital’s 13.71% APY
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HEADLINE
**State of play: **A group of 21 major financial institutions, including Bank of America, Citi and Goldman Sachs, plans to launch a new stablecoin venture starting with a US dollar token.
The company, expected to be established in the second half of 2026, will bring a US dollar stablecoin to market in the first half of 2027, with a euro token planned next.
The project expands an October 2025 initiative from 10 banks, now spanning 21 institutions across North America, Europe, East Asia, the Middle East and Africa.
The group aims to meet requirements under the US GENIUS Act and the EU’s Markets in Crypto Assets framework.
The stablecoin market has grown from about $200B to around $303B since early last year, with Tether’s USDT holding 60% share and Circle’s USDC over 20%.
Circle shares fell about 6% on the news, adding to pressure since Stripe, Coinbase, Visa, Mastercard and BlackRock backed a rival Open USD stablecoin in June.
**What’s Next: **Regulatory filings and the official launch of the venture, plus closing conditions expected in the second half of 2026, followed by the US dollar stablecoin’s market debut in the first half of 2027.
**Why it Matters: **A consortium of 21 global banks entering stablecoins signals that traditional finance now sees dollar tokenization as core infrastructure, not just a crypto native experiment.
**Our Take: **This is less about competing on yield or features and more about banks defending payment rails they already control, and Circle’s stock drop shows the market reading it as a direct threat to existing stablecoin issuers.
QUICK BITES
Kastlaunchesstablecoin-powered business platform after $80M raise.Singaporeproposes100% reserves and a ban on yields for stablecoin issuers.Ethenapushesstablecoins into banking with savings yield, cards and payments.Citi, Goldman, other banks and asset managersteam upon stablecoin venture.
YIELD OF THE WEEK
The vaultaccepts USDT deposits and deploys capital exclusively into a single stUSDS/USDT Morpho market, with ~$482.32k in total deposits and ~$21.8k in available liquidity at 95.47% utilization.Capital is fully allocated into the stUSDS/USDT market at 86% LTV with 100% relative cap, generating yield from Sky’s stablecoin ecosystem borrowing demand.
Yield is generated from lending demand against stUSDS collateral at 13.71% market APY, at 0% management and performance fees.
The vaultaccepts USDC deposits and lends against InfiniFi ecosystem collateral assets, with ~$1.08M in total deposits and ~$457.48k in available liquidity.Capital is primarily deployed into siUSD/USDC (~$1.07M at 93.12% utilization), with a smaller allocation to iUSD/USDC (~$6.53k at 93.05% utilization).
Yield is generated from lending demand across InfiniFi collateral markets at 12.43% and 11.98% APY respectively, net of a 5% performance fee.
The vaultaccepts USDC deposits and lends exclusively against fxSAVE collateral from the f(x) Protocol ecosystem, with ~$6.34M in total deposits and ~$1.92M in available liquidity at 76.59% utilization.Capital is fully deployed into the fxSAVE/USDC market at 91.5% LTV with 100% relative cap, with a cbBTC/USDC market available but currently unallocated.
Yield is generated from lending demand against fxSAVE collateral at 11.17% market APY, with a base vault APY of 2.85% boosted by 8.00% in FXN incentives, net of a 10% performance fee and 0% management fee.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
