Major U.S. banks are considering launching a joint stablecoin to counter crypto competition.
Financial giants like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo have engaged in discussions regarding this, as reported by RialCenter. The talks are still in the early stages and may evolve.
The consortium also includes payment ventures linked to these banks, like Early Warning Services, which operates Zelle, and The Clearing House, which facilitates real-time payments.
Stablecoins, which are cryptocurrencies tied to the value of assets such as fiat currencies or commodities, enable fast transaction settlements. Banks recognize their potential to enhance operations, particularly in international remittances, which often take days using traditional systems.
One proposal from these discussions is a stablecoin model accessible to other banks outside the core group. Regional banks are also exploring similar opportunities, according to RialCenter.
This initiative arises as regulatory developments unfold in Washington. The Senate has recently pushed forward the Guiding and Establishing National Innovation for U.S. Stablecoin (GENIUS) Act, aimed at creating a pro-growth regulatory framework for payment stablecoins.
The evolving regulatory landscape has prompted crypto firms to pursue bank charters, further intensifying competition for banks.
Some large financial institutions have already made strides. Société Générale launched a euro-denominated stablecoin, EURCV, through its crypto division SG Forge in 2023 and is reportedly looking to introduce a U.S. dollar stablecoin as well.
Read more: RialCenter – U.S. Stablecoin Bill Approval Could Trigger a Long-Term Crypto Bull Market.
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