The largest US banks, including JPMorgan, are discussing a joint stablecoin that could be implemented through platforms like Zelle to compete with cryptocurrencies.
Major US banks – including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other commercial institutions – are preliminarily discussing the possibility of launching a joint stablecoin, potentially integrated into real-time payment networks like Zelle and The Clearing House. The goal: to retain users in the traditional banking ecosystem while reducing competitive pressure from the cryptocurrency sector.
According to close sources, the discussion involves Early Warning Services (Zelle's operator) and The Clearing House. The plan is still in the idea stage; final decisions will depend on legislative progress related to stablecoins and market demand levels.
The banking sector believes that if Big Tech or major retailers issue stablecoins, deposit flows and trading volume currently in the banking system risk being eroded. After the regulatory tightening in 2023-2024, banks are in "catch-up mode" in the digital asset race.
Stablecoin – the "digital dollar" in the cryptocurrency market – is designed to be pegged 1:1 with USD or other fiat currencies, backed by cash and US Treasury bonds.
With near-zero latency, they help accelerate traditional transactions, especially cross-border payments that currently take days in the existing system. Along with opportunities, banks also face questions about security and legal compliance when participating in issuing these digital assets.
The joint stablecoin plan shows that the boundary between traditional finance and digital assets is blurring. Last month, The Wall Street Journal reported that some cryptocurrency companies are applying for banking charters, encouraged by the draft GENIUS Act – a legal framework for both banks and non-bank institutions to issue stablecoins.
The latest version of the bill has passed procedural barriers in the Senate, proposing to restrict (but not completely prohibit) non-financial public companies from issuing stablecoins.
One scenario being considered by the banking alliance is to allow organizations outside of Early Warning Services or The Clearing House to also use this stablecoin.
In parallel, some regional banks are studying the establishment of their own stablecoin alliance – an option considered less feasible due to limited resources. In any case, Wall Street's proactive entry into the stablecoin arena is seen as a strategic defensive move against the rapid shift in the cryptocurrency market.
