Major U.S. banks, including JPMorgan and Wells Fargo, are in early talks to launch a joint stablecoin to compete with crypto leaders.
A recent bill advancing through Congress has triggered renewed interest in digital currency development from traditional financial institutions.
Charles Hoskinson acknowledged the development as expected, aligning with long-standing predictions from the blockchain sector.
Leading U.S. financial institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are currently engaged in early-stage discussions to develop a joint stablecoin.These talks aim to establish a shared digital currency that competitive to already existing currencies such as USDT and USDC, as described in a Wall Street Journal report.
Major payment infrastructure groups supporting this effort are Zelle and the Clearing House. While it is still in the planning stage, the interest shown by traditional finance toward digital currency reveals that existing crypto companies are making the traditional sector more competitive.
New regulations give people in the market more confidence.
The new attention towards stablecoins comes after an important milestone in regulation. U.S. lawmakers have recently pushed a stablecoin bill forwards, showing that President Trump supports digital currencies more than in the past. As a result, more people and companies are adopting cryptocurrency which makes them more accepted in the financial industry.
Charles Hoskinson, founder of Input Output Global, the company behind Cardano, reacted to the report on social platform X by stating, “As predicted.” His brief statement echoed a sentiment long held within the crypto community that traditional financial entities would eventually move to enter the digital currency space in a significant way.
Stablecoin market poised for major shifts
With a market valued at approximately $243 billion, stablecoins are a vital segment of the crypto economy. Tether currently leads with a $152 billion share, but new entrants from major banks could disrupt this balance. Analysts and community members have already begun speculating on the potential impact, with some predicting a rapid decline of USDT and USDC in favor of bank-backed alternatives.
Other major players are not standing still. Meta is exploring stablecoin options after shelving its LIBRA project, and Ripple launched its RLUSD stablecoin late last year, aiming to serve enterprise clients. The convergence of tech, finance, and blockchain points to an intensifying race to shape the future of digital payments.
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