Major U.S. banks collaborate on a unified stablecoin project as federal regulators tighten oversight of crypto and digital asset markets
To contend with the increasing level of competition, JPMorgan Chase, Bank of America, and other significant financial institutions are purportedly investigating the implementation of a shared stablecoin.
The Wall Street Journal reported on Friday that legislators are close to approving new rules for digital assets. As a result, some of the largest U.S. banks are considering a plan to jointly issue a stablecoin, according to individuals familiar with the matter.
JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are among the banks purportedly engaged in preliminary discussions.
The discussions also encompass entities they jointly own, including the Clearing House and Early Warning Services, which operates Zelle.
The source stated that these discussions are still in the “early, conceptual stages” and may undergo modifications.
One proposal under consideration is the authorization of other financial institutions to utilize the stablecoin. Additionally, certain regional and community institutions have purportedly investigated the possibility of establishing an independent stablecoin consortium; however, the specifics are still uncertain.
The announcement was made mere days after the U.S. Senate voted to advance the GENIUS Act, establishing a regulatory framework for stablecoins.
On Monday, May 19, the measure was approved by a critical procedural vote of 66-32, which paved the way for a comprehensive debate. Issuers must maintain complete dollar reserves, submit to audits, and adhere to additional regulations when issuing tokens exceeding $50 billion.
U.S. President Donald Trump is also supporting stablecoins. In a recent interview, David Sacks, his advisor, stated that regulation could generate “trillions of dollars of demand for our Treasuries almost immediately and very rapidly.”