Several of America’s largest banks—including entities tied to JPMorgan, Bank of America, Citigroup, and Wells Fargo—are exploring the creation of a shared stablecoin, according to sources familiar with the discussions.
Early Warning Services (Zelle’s parent company) and The Clearing House are also reportedly involved.
The project is still in its early stages and may evolve depending on regulatory developments and market demand. None of the institutions have issued formal statements.
The talks come just as the U.S. Senate advances the GENIUS Act, a bill aimed at regulating stablecoin issuance and ensuring AML compliance. Crypto advisor David Sacks anticipates bipartisan support for its passage.
However, the legislation has sparked controversy. Democrats are proposing amendments to block Donald Trump and other officials from profiting, following the launch of USD1, a Trump-backed stablecoin introduced in March.
With regulation on the horizon, major banks appear to be preparing for a stablecoin future—on their own terms.
Coinbase has announced a major partnership with JPMorgan Chase, the largest U.S. bank, aimed at expanding access to cryptocurrencies for over 80 million Chase customers.
Global fintech firm FIS (NYSE: FIS) has entered into a new strategic partnership with a subsidiary of Circle Internet Group, Inc. (NYSE: CRCL) to bring USDC payment capabilities to U.S. financial institutions.
PayPal has launched a new service, Pay with Crypto, aimed at reducing the high costs and complexity of cross-border payments for merchants.
Goldman Sachs and BNY are set to unveil a groundbreaking blockchain initiative that will allow institutional investors to purchase tokenized shares of money market funds, according to CNBC.