According to CoinMeta, as reported by Coinpaper, banks hope to achieve faster payments, reserve income, and blockchain settlements through stablecoins, while also defending against the impact of USDT, USDC, and fintech competitors. Institutions such as Goldman Sachs, Bank of America, Citibank, and Deutsche Bank are planning to launch US dollar stablecoins in 2027. Stablecoins provide financial institutions with a way to move funds on blockchain networks, settle transactions around the clock, and directly participate in a market worth over $300 billion. The market for stablecoins has grown from less than $10 billion in 2020 to over $300 billion in 2026, with Tether and Circle controlling the majority of this market. Banks hope to protect their deposits by issuing their own stablecoins, preventing customers from transferring large amounts of funds into stablecoins and thereby losing a cheap source of capital.