WSJ: Major Banks Including JPMorgan Chase are Exploring the Issuance of a Joint Stablecoin

According to a report by The Wall Street Journal citing informed sources, several of the largest banks in the United States are exploring the possibility of jointly issuing a stablecoin. This move aims to counter the increasing competition from the cryptocurrency industry.

Informed sources revealed that so far, the companies involved in the discussions include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other large commercial banks. These banks are collectively associated with companies such as Early Warning Services, which operates the peer-to-peer payment system Zelle, and the real-time payment network Clearing House.

The discussions among the banking consortium are still in the early, conceptual stage and may change. Any final decision will depend on the outcomes of legislative actions surrounding stablecoins and other factors, such as whether the banks believe there is sufficient market demand for these stablecoins.

The most notable legislative action currently is a stablecoin regulatory bill in the United States called the “Guidance and Establishment of a National Stablecoin Innovation Act” (the “GENIUS Act”), which aims to establish a regulatory framework for banks and non-bank entities to issue stablecoins. The bill passed a critical procedural vote earlier this week and is currently in the amendment stage in the Senate. A full vote in the chamber is expected in the coming weeks.

Some informed sources indicate that one possible form of the bank alliance could involve creating a model that allows other banks to utilize the stablecoin, not limited to the co-owners of Clearing House and Early Warning Services. Some regional and community banks are also considering whether to establish another stablecoin alliance, but it would be more challenging for these smaller banks to execute such a plan.

The banking industry has been preparing for a possibility: that stablecoins could become widely adopted during President Trump’s tenure, diverting deposits and transactions that they currently handle, especially as large tech companies or retailers also enter the competition. Following a regulatory crackdown two years ago, the banking sector is currently in a phase of catching up with the cryptocurrency space.

Related Reports: “White House AI and Crypto Czar Sacks: Stablecoin Bill Expected to Quickly Release Trillions in Treasury Demand” “US Stablecoin Bill Stalled: Trump’s Involvement in Crypto Assets Sparks Bipartisan Consensus Breakdown”