Reports indicate that some large banking companies in the United States are considering collaborating to issue cryptocurrency stablecoins.
JPMorgan, Bank of America, Citigroup, and Wells Fargo's affiliates are discussing the possibility of jointly issuing stablecoins, the Wall Street Journal reported on May 22.
Other financial institutions that may be involved include Early Warning Services, the parent company of digital payment network Zelle, and the payment network Clearing House.
Discussions are still in the early stages, and final project decisions may change based on the regulatory environment and market demand.
A spokesperson for JPMorgan told Cointelegraph that the company has no comment at this time, and other banks did not immediately respond to requests for comment.
On May 20, the U.S. Senate voted 66-32 to advance the discussion of the GENIUS Act regarding stablecoin regulation.
The bill establishes a regulatory framework for stablecoin collateral and requires compliance with anti-money laundering laws. The bill has now entered the discussion phase in the Senate.
Earlier this week, White House crypto expert David Sachs stated that he expects the bill to pass and receive bipartisan support.
However, senior Democrats plan to amend the bill to prohibit President Trump and other U.S. officials from profiting from stablecoins.
Trump and his family launched the cryptocurrency platform World Liberty Financial and a USD1 stablecoin in March. Critics believe that Trump may personally benefit from favorable stablecoin regulations.
Surge in stablecoin demand
Demand for stablecoins continues to rise, with nations and institutions looking to integrate stablecoins.
The total market capitalization of stablecoins has grown from $205 billion at the beginning of the year to $245 billion, an increase of 20%.
Earlier this week, reports indicated that the size of yield-bearing stablecoins reached $11 billion, accounting for about 4.5% of the entire market.
NYU professor Austin Campbell pointed out that the banking lobby in the U.S. is 'panicking' over the potential disruption of traditional banking models by stablecoins.
Earlier this month, reports indicated that tech giant Meta is exploring the possibility of integrating stablecoin payments into its platform.
