Global banking giants are accelerating their entry into the stablecoin sector, signaling a broader institutional pivot toward blockchain-based payment infrastructure. Citigroup, Goldman Sachs, and other global banks and asset managers have teamed up on a new stablecoin venture that will initially focus on a U.S. dollar-pegged token for payments and digital asset settlement, with a euro-denominated token identified as a priority for expansion, CoinDesk reported.
The consortium marks one of the most significant coordination efforts among legacy financial institutions to build shared stablecoin rails. By prioritizing a dollar token first, the group aims to address immediate demand for efficient settlement in digital asset markets, while the planned euro token signals ambitions to cover major global currencies. The initiative underscores how traditional finance firms are increasingly viewing stablecoins not as experimental crypto instruments but as practical infrastructure for modernizing payments and clearing processes.
While institutional players build wholesale networks, crypto-native firms are pushing stablecoins into consumer banking. Ethena Labs has launched the beta of Ethena Pay, a self-custodial money application built on Avalanche and available across 48 countries, according to The Block. The app is designed to function as an everyday banking tool, offering users high-yield savings and payment rewards denominated in stablecoins rather than traditional fiat deposits.
Ethena Pay offers a 6% yield on dollar savings, CoinDesk reported, alongside card cashback incentives. The Block noted that the app provides up to 6% yield and up to 10% cashback. The platform uses Avalanche for underlying settlement, aiming to deliver the speed and cost efficiencies of blockchain transactions while maintaining a user experience competitive with conventional fintech and banking apps.
These parallel developments illustrate a growing bifurcation in the stablecoin market. On one side, major banks and asset managers are constructing consortium-based stablecoin systems optimized for institutional settlement and regulatory compliance. On the other, decentralized protocols are deploying self-custodial applications that offer retail users high yields and spending rewards, directly challenging traditional savings and card products.
The simultaneous advancement of institutional and consumer-facing stablecoin infrastructure suggests the asset class is maturing across multiple fronts. As global banks collaborate to standardize digital dollar and euro settlement, crypto-native platforms like Ethena are leveraging public blockchain networks to deliver banking alternatives without intermediaries. Together, these efforts are expanding the definition of stablecoin utility from trading collateral to foundational infrastructure for both wholesale finance and everyday banking.