Several large US banks are reportedly discussing a plan to
launch a joint stablecoin. According to The Wall Street Journal, firms
connected to JPMorgan, Bank of America, Citigroup, and Wells Fargo are involved
in early-stage talks. The report was also cited by Cointelegraph.
Stablecoins have seen growing adoption across different
sectors. A recent Finance Magnates report noted that over
109 million wallets are using stablecoins. Platforms such as Stripe now
offer stablecoin payouts to merchants and gig workers. However, many retail
brokers have not yet implemented similar features. The scale of usage is
drawing attention from traditional financial institutions that have largely
remained cautious.
Additional Participants Involved
Other participants include Early Warning Services, the
parent company of Zelle, and the Clearing House, a payments network. Sources
familiar with the matter said the initiative is still in its initial phase.
Progress may depend on regulatory developments and overall market demand for
stablecoins.
🚨 JUST IN: Major US banks including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are exploring to issue a joint crypto stablecoin per WSJ. pic.twitter.com/x53VxPvHyX
— Cointelegraph (@Cointelegraph) May 23, 2025
US Senate Advances Regulation
The reported talks come as the US Senate advances new
legislation on stablecoin regulation. On May 20, the Senate voted 66–32 in
favor of advancing the Guiding and Establishing National Innovation for US
Stablecoins (GENIUS) Act. The bill sets out requirements for collateralization
and includes anti-money laundering measures. It is now set for debate on the
Senate floor.
You may find it interesting at FinanceMagnates.com: Stablecoins
Go Mainstream as Mastercard and MoonPay Partner Across 150M Merchants.
Political Concerns on Profits
White House crypto adviser David Sacks has said the bill is
expected to receive bipartisan support. However, some Democratic lawmakers are
pushing to add a provision that would prevent President Donald Trump and other
US officials from profiting from stablecoins.
In March, Trump and his family launched a digital asset
platform, World Liberty Financial, which introduced a stablecoin called USD1.
Critics argue that the proposed regulation could benefit the former president.
Stablecoin demand has increased sharply this year. Market
capitalization has risen from $205 billion to $245 billion. Yield-bearing
stablecoins now account for about 4.5% of the total, with a circulating supply
of $11 billion.
Banks See Stablecoins as Threat
Some analysts say this growth is raising concerns within the
traditional banking sector. NYU professor Austin Campbell noted that banks may
view stablecoins as a threat to their existing business models. Separately,
Meta is reportedly exploring stablecoin-based payments for its platforms.
This article was written by Tareq Sikder at www.financemagnates.com.
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