Major US Banks Mulling Joint Stablecoin Venture: Report

America’s largest banks, together with JPMorgan Chase, Financial institution of America, Citigroup, Wells Fargo, and others, are in early discussions about making a joint stablecoin to compete with the crypto business, in line with the Wall Road Journal, citing folks conversant in the matter, on Might 22.

The conversations reportedly contain bank-owned fee firms like Zelle operator Early Warning Providers and the Clearing Home.

The financial institution’s stablecoin ambitions are nonetheless in conceptual levels and depending on upcoming stablecoin laws and market demand, the report added.

EVERYONE WANTS A PIECE OF THE PIE.

JP MORGAN, WELLS FARGO, AND CITI BANK WANT TO LAUNCH THEIR OWN U.S. BANK-BACKED STABLECOIN.

THIS COULD BE GREAT FOR ADOPTION.

HORRIBLE FOR DECENTRALIZATION.

BUT CRYPTO ISN’T GOING ANYWHERE. pic.twitter.com/XLBSKI45tm

— Kyle Chassé / DD (@kyle_chasse) May 23, 2025

Banks Enjoying Catchup

The report comes simply days after key stablecoin laws was moved along in US Congress. On Might 20, the Guiding and Establishing Nationwide Innovation for US Stablecoins (GENIUS) Act, handed in a Senate vote and now units up the invoice for flooring debate.

American banks are rising involved that below President Trump, stablecoins may turn into broadly adopted and pose a risk to their deposits, transaction quantity, and finally income, particularly if huge tech firms enter the market.

In March, the Trump household’s DeFi platform World Liberty Monetary mentioned it might launch a stablecoin. The banks are actually enjoying catch-up after crypto regulatory crackdowns two years in the past.

Additionally they see stablecoins as helpful for dashing up routine transactions like cross-border funds, which presently take days by way of conventional methods.

“The opportunity of Wall Road’s conventional powers teaming as much as subject their very own stablecoin marks the most recent signal that mainstream and crypto finance are inching nearer collectively,” the WSJ said.

A Risk to Stablecoin Issuers?

BitMEX founder Arthur Hayes hinted that this might be the demise of crypto stablecoin issuers equivalent to Circle.

Bye bye Circle. Thanks for taking part in. https://t.co/LmFPrv6KZK

— Arthur Hayes (@CryptoHayes) May 23, 2025

Nevertheless, in actuality, it’s unlikely that US banks will be capable of compete with international stablecoins, which can be found to everybody. It’s because customers will seemingly want a US checking account and all of the restrictions that include it to make use of their merchandise.

In the meantime, the crypto stablecoin market is presently price $248 billion, which represents round 7% of all the crypto market. Earlier this month, stablecoin liquidity reached a report excessive of $220 billion, reported CryptoPotato.

In early Might, US Treasury researchers predicted that there might be a rise of greater than 8x from the present stablecoin market cap, propelling it to about $2 trillion by 2028.