Top U.S. banks, including JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC), are in early discussions to create a joint stablecoin, according to a Wall Street Journal report citing sources familiar with the matter. The initiative, still in its conceptual phase, aims to challenge the growing dominance of crypto-native stablecoins and digital payment systems.
Entities such as Early Warning Services, the operator of Zelle, and the Clearing House, which manages a real-time payments network, are also involved in the talks. The stablecoin would be pegged to the U.S. dollar and used for fast, low-cost transactions—especially in cross-border payments—where traditional systems lag behind emerging blockchain solutions.
The project’s future depends heavily on legislative developments, particularly the GENIUS Act, which advanced through a key Senate procedural step this week. If enacted, the bill would establish a regulatory framework for both banks and fintechs to issue stablecoins while limiting issuers outside the financial sector.
Banks are increasingly concerned about losing market share in payments and deposits as tech giants and retail companies explore digital currencies. A unified bank-issued stablecoin could serve as a countermeasure, enabling institutions to modernize payment infrastructure and maintain their role in the evolving digital financial ecosystem.
The proposed model would accommodate both large and regional banks, offering a scalable solution for stablecoin issuance within traditional finance. While still early, this potential shift highlights how mainstream financial institutions are moving to compete with crypto innovations, leveraging blockchain-inspired technology under a regulated framework to regain control over digital payments.
