The Wall Street Journal reported that companies affiliated with JPMorgan, Bank of America, Citigroup, and Wells Fargo have discussed the potential joint issuance of a stablecoin.
Several of the largest banking institutions in the United States are reportedly exploring a collaborative effort to launch a cryptocurrency stablecoin.
Entities affiliated with JPMorgan, Bank of America, Citigroup, and Wells Fargo have discussed the possibility of jointly issuing a stablecoin, according to a May 22 report by The Wall Street Journal, which cited individuals familiar with the discussions.
Early Warning Services, which owns the digital payments network Zelle, and the Clearing House payments network have also joined the list of financial institutions involved in the prospective stablecoin initiative.
The discussions remain in a preliminary stage, and regulatory developments or shifting market demand for stablecoins may influence the project’s outcome.
A JPMorgan spokesperson stated that the company would not provide a comment. Bank of America, Citigroup, and Wells Fargo did not immediately respond to requests for comment.
On May 20, the US Senate voted 66-32 to advance deliberations on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to regulate stablecoins.
The bill outlines a regulatory framework for the collateralization of stablecoins and mandates compliance with Anti-Money Laundering regulations. It is now set for debate on the Senate floor.
Earlier this week, White House crypto czar David Sacks predicted the bill would pass and stated that it was expected to receive bipartisan support.
However, senior Democratic lawmakers plan to propose amendments to the bill that block President Donald Trump and other U.S. officials from profiting from stablecoins.
President Trump and his family launched the crypto platform World Liberty Financial, which introduced the USD1 stablecoin in March. Critics argue that passing favorable stablecoin regulations could personally benefit President Trump financially.
Rising Demand Fuels Stablecoin Market Expansion
Nation states have increasingly adopted stablecoins, while institutions have shown growing interest in integrating them into their operations.
The total market capitalization of stablecoins has climbed to $245 billion, marking a 20% increase from the $205 billion recorded at the start of the year.
Earlier this week, reports indicated that yield-bearing stablecoins accounted for nearly 4.5% of the total stablecoin market, with an estimated circulating supply of $11 billion.
Austin Campbell, a professor at New York University and founder of Zero Knowledge Consulting, stated that the American banking lobby has shown signs of panic, viewing stablecoins as a disruptive force to the traditional banking business model.
Earlier this month, reports indicated that tech giant Meta began exploring the integration of stablecoin payments into its platforms.
