America\u2019s biggest banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and others, are in early discussions about creating a joint stablecoin to compete with the crypto industry, according to the Wall Street Journal, citing people familiar with the matter, on May 22.<\/p>\n
The conversations reportedly<\/a> involve bank-owned payment companies like Zelle operator Early Warning Services and the Clearing House.<\/p>\n The bank\u2019s stablecoin ambitions are still in conceptual stages and dependent on upcoming stablecoin legislation and market demand, the report added.<\/p>\n EVERYONE WANTS A PIECE OF THE PIE.<\/p>\n JP MORGAN, WELLS FARGO, AND CITI BANK WANT TO LAUNCH THEIR OWN U.S. BANK-BACKED STABLECOIN.<\/p>\n THIS COULD BE GREAT FOR ADOPTION.<\/p>\n HORRIBLE FOR DECENTRALIZATION.<\/p>\n BUT CRYPTO ISN\u2019T GOING ANYWHERE. pic.twitter.com\/XLBSKI45tm<\/a><\/p>\n \u2014 Kyle Chass\u00e9 \/ DD (@kyle_chasse) May 23, 2025<\/a><\/p>\n\n The report comes just days after key stablecoin legislation was moved along<\/a> in US Congress.\u00a0On May 20, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, passed in a Senate vote and now sets up the bill for floor debate.<\/p>\n American banks are growing concerned that under President Trump, stablecoins could become widely adopted and pose a threat to their deposits, transaction volume, and ultimately profits, especially if big tech companies enter the market.<\/p>\n In March, the Trump family\u2019s DeFi platform World Liberty Financial said it would launch a stablecoin<\/a>.\u00a0The banks are now playing catch-up after crypto regulatory crackdowns two years ago.<\/p>\n They also see stablecoins as useful for speeding up routine transactions like cross-border payments, which currently take days through traditional systems.<\/p>\n \u201cThe possibility of Wall Street\u2019s traditional powers teaming up to issue their own stablecoin marks the latest sign that mainstream and crypto finance are inching closer together,\u201d the WSJ stated.<\/p>\n BitMEX founder Arthur Hayes hinted that this could be the demise of crypto stablecoin issuers such as Circle.<\/p>\n Bye bye Circle. Thanks for playing. https:\/\/t.co\/LmFPrv6KZK<\/a><\/p>\n \u2014 Arthur Hayes (@CryptoHayes) May 23, 2025<\/a><\/p>\n\n However, in reality, it is unlikely that US banks will be able to compete with global stablecoins, which are available to everyone. This is because users will likely need a US bank account and all the restrictions that come with it to use their products.<\/p>\n Meanwhile, the crypto stablecoin market is currently worth $248 billion, which represents around 7% of the entire crypto market. Earlier this month, stablecoin liquidity reached a record high of $220 billion, reported<\/a> CryptoPotato<\/em>.<\/p>\n In early May, US Treasury researchers predicted<\/a> that there could be an increase of more than 8x from the current stablecoin market cap, propelling it to about $2 trillion by 2028.<\/p>\n The post Major US Banks Mulling Joint Stablecoin Venture: Report<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" America\u2019s biggest banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and others, are in early discussions about creating a joint stablecoin to compete with the crypto industry, according to the Wall Street Journal, citing people familiar with the matter, on May 22. The conversations reportedly involve bank-owned payment companies like Zelle operator Early […]<\/p>\n","protected":false},"author":0,"featured_media":68578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-68577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/68577"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68577"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/68577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/68578"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Banks Playing Catchup<\/h2>\n
A Threat to Stablecoin Issuers?<\/h2>\n