PMorgan, Bank of America, and Citigroup are in early discussions about creating a joint stablecoin through affiliated payment platforms.
The stablecoin would be accessible to other banks beyond the consortium, supporting faster, dollar-pegged transactions within the financial sector.
The GENIUS Act gained Senate momentum, setting a potential legal framework for stablecoins and attracting bipartisan support for crypto regulation.
The big U.S. banks JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are said to be in initial discussions to jointly issue a stablecoin. The discussions include the two big U.S. payment network operators Early Warning Services and The Clearing House.
https://twitter.com/WuBlockchain/status/1925722546474721421
Banking Giants Discuss Joint Stablecoin Initiative
According to a Wall Street Journal report on May 22, large U.S. banks are exploring a shared stablecoin project. The discussions remain in the conceptual stage and may evolve over time. The stablecoin would be designed for use by both member banks and others across the financial sector.
The involved parties include Early Warning Services, the operator behind Zelle, and The Clearing House, a key real-time payments network. Both entities are backed by several top-tier banks. While the firms have not commented publicly, sources familiar with the matter suggest a collaborative model that allows broader bank participation is being considered.
The potential stablecoin could offer faster settlements and added efficiency in interbank transactions. It would likely be pegged to the U.S. dollar to maintain price stability.
Interest Grows Beyond Major Banks
The Journal also reported that regional and community banks are exploring the idea of forming a separate stablecoin consortium. These smaller institutions are evaluating whether to develop a model tailored to their unique customer bases and infrastructure needs.
This broader interest in stablecoins comes amid rising pressure for innovation in the banking sector. Stablecoins are widely used within the cryptocurrency ecosystem to transfer funds efficiently between digital assets.
If realized, such projects could transform how both large and small banks process payments domestically.
Regulatory Momentum Boosts Stablecoin Developments
On May 20, the U.S. Senate voted 66-32 to advance discussion on the GENIUS Act. This proposed legislation aims to regulate stablecoin issuance and enforce Anti-Money Laundering compliance. The bill now moves to the Senate floor for further debate.
Earlier this week, White House crypto policy head David Sacks posted on X that he expects the GENIUS Act to pass with bipartisan support. He described the bill as a “clear path forward” for stablecoin regulation.
President Donald Trump also reiterated his crypto adoption advocacy more recently when he branded himself the “crypto president.” He reiterated that crypto can make the banking system better and the dollar position stronger in the world.
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