Some of the largest US banks, including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, are exploring a potential partnership to issue a shared stablecoin.
The Wall Street Journal reported Thursday that the initiative, if it proceeds, would mark a major step by traditional financial institutions into the digital currency space, where crypto-native firms have so far led the charge.
The consortium talks reportedly involve entities such as Early Warning Services, the firm behind Zelle, and the Clearing House, which operates a real-time payment system that many major banks use.
While discussions are still conceptual, the report said banks are weighing the potential demand for a consortium-backed stablecoin, alongside looming regulatory developments.
Lawmakers Move Closer to Defining Ground Rules for US Digital Payment Tokens Market
The renewed interest comes as US lawmakers make headway on a long-awaited regulatory framework. This week, the Senate advanced the GENIUS Act, a bipartisan bill that lays out oversight rules for both banks and nonbanks issuing stablecoins.
The act introduces reserve requirements, transparency standards, and places issuers under the Bank Secrecy Act, aiming to promote safer adoption while maintaining the US dollar’s global role.
The bill’s progress is seen as a green light for institutions that had previously been hesitant after regulators clamped down on crypto activity in 2022. Bank executives now view stablecoins as a legitimate tool to modernize cross-border transfers, reduce transaction times, and compete with digital offerings from tech giants and crypto startups.
Banks Weigh Stablecoin Entry as Pressure Mounts From Policy Shifts and Rivals
Stablecoins, typically pegged one-to-one with fiat currencies and backed by liquid reserves, are already central to crypto trading and settlements. For banks, issuing their own version could allow them to retain control over payments infrastructure as digital dollars become more common.
One model under discussion could allow broader access, letting banks beyond the consortium use the stablecoin. Meanwhile, some smaller regional banks have floated the idea of a separate stablecoin initiative, though such an effort would likely face scalability and regulatory hurdles.
The timing is crucial. With President Trump’s administration openly supportive of digital finance and his family’s firm launching its own stablecoin earlier this year, banks are under pressure to act. A clear legal framework could reshape the landscape, favoring compliant issuers and prompting a wave of innovation from legacy institutions.
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