According to sources cited by the Wall Street Journal, several of the largest banks in the U.S. are exploring the possibility of jointly issuing a stablecoin, aiming to counter the increasingly fierce competition from the cryptocurrency industry.
Informed sources revealed that so far, the companies participating in the discussions include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other large commercial banks, including the operators of the peer-to-peer payment system Zelle, Early Warning Services, and the real-time payments network Clearing House.
Discussions among banking consortiums are still in the early, conceptual stage and may change. Any final decision will depend on the outcomes of the legislative actions surrounding stablecoins and other factors, such as whether banks believe there is sufficient market demand for these stablecoins.
The most prominent legislative action at the moment is the U.S. regulatory bill for stablecoins known as the (Guidance and Establishment of the U.S. Stablecoin National Innovation Act) (the "GENIUS Act"), which aims to establish a regulatory framework for the issuance of stablecoins by both banking and non-banking institutions. The bill passed a crucial procedural vote earlier this week and is currently in the amendment stage in the Senate. A full chamber vote is expected in the coming weeks.
Some informed sources indicate that one possible form of a banking alliance is to establish a model that allows other banks to also use the stablecoin, not limited to the co-owners of Clearing House and Early Warning Services. Some regional and community banks are also considering whether to form another stablecoin alliance, but for these smaller banks, implementing such a plan will be more challenging.
Related Reports: (White House AI and Cryptocurrency Czar Sacks: The Stablecoin Bill is Expected to Quickly Release Trillions of Dollars in Treasury Demand) (U.S. Stablecoin Bill Stalled: Trump's Involvement in Crypto Assets Sparks Bipartisan Consensus Breakdown)
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