A large consortium of American banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, is considering launching a joint stablecoin to improve international financial transactions. This was reported by The Wall Street Journal citing sources close to the discussions.
This is reported by Finway
The initiative is driven by concerns among traditional financial institutions about declining demand for their services due to increasing competition from cryptocurrencies. Companies such as Early Warning Services, which manages the Zelle payment system, and Clearing House, a real-time payment network co-owned by the mentioned banks, are participating in the negotiations.
Prospects for Launching the Stablecoin
Although the project is still in its early stages, the possibility of creating a joint stablecoin indicates a gradual convergence of the traditional banking system with crypto-finance. One of the models being discussed is a format that would allow other banks to utilize this stablecoin, not just the consortium members.
Amid the growing popularity of stablecoins among major tech companies and retailers, traditional banks believe they may lose control over transactions and deposits. As the publication notes, “the banking industry is in catch-up mode following increased regulatory pressure two years ago.”
Regulatory Challenges and Legislative Initiatives
Financial institutions believe that stablecoins could help expedite routine operations, particularly international payments, which can take several days. However, sources report that banks are still concerned about the security and regulatory implications of participating in digital assets.
Legislative uncertainty also complicates the discussion process. Nevertheless, the US Senate has supported the GENIUS bill, which aims to establish clear rules for the issuance of stablecoins by both banks and non-bank institutions. The latest version of the document includes certain restrictions for non-bank public companies but does not impose a complete ban as demanded by banking lobbyists.
Additionally, journalists note that regional and local banks are also considering forming a separate stablecoin consortium, although this may be significantly more challenging due to limited resources.
“The Chair of the House Financial Services Committee, French Hill, has stated the negative impact of President Donald Trump’s crypto initiatives on the passage of the stablecoin legislation.”