Major U.S. Banks Consider Joint Stablecoin Launch to Compete with Crypto
Major U.S. banks are considering a joint stablecoin to address competition from cryptocurrencies. Key institutions involved include:
- JPMorgan Chase
- Bank of America
- Citigroup
- Wells Fargo
Discussions are in early stages and may evolve. The consortium also includes payment ventures such as Early Warning Services (operating Zelle) and The Clearing House.
Stablecoins, which are pegged to fiat currencies or commodities, can facilitate rapid transactions. Banks view them as a way to enhance operations, particularly in international remittances, which currently take days to process.
One proposal is to allow other banks to join the stablecoin initiative. Regional banks have shown interest in similar projects.
This development coincides with ongoing regulatory advancements, including the Senate's progression of the Guiding and Establishing National Innovation for U.S. Stablecoin (GENIUS) Act, aimed at establishing a regulatory framework for payment stablecoins.
As regulation improves, pressure mounts on banks from crypto firms seeking bank charters. Notably, Société Générale launched a euro-denominated stablecoin, EURCV, in 2023 and plans to introduce a U.S. dollar stablecoin.