Major banks in the United States, including JPMorgan and Bank of America, are exploring the joint launch of a stablecoin. Initial discussions involve bank-owned entities like Early Warning Services, with progress linked to legislation on stablecoins and market demand. The U.S. stablecoin market could reach $3 trillion by 2030, prompting banks to act amid regulatory changes and competition from digital assets.
According to the Wall Street Journal, major financial institutions in the United States, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other commercial banks, would be participating in preliminary discussions to jointly launch a stablecoin.
This move arises as a strategic response to the increasing competition these banks face from the crypto industry.
The report revealed that discussions involve co-owned companies of these banks, such as Early Warning Services and the Clearing House. However, these conversations are still in the early stages. The outcome would depend on the progress of legislation regarding stablecoins and market demand. Notably, the CEO of Bank of America hinted at a possible launch of a stablecoin by the end of February.
Now, this latest initiative reflects a broader shift within the banking sector. It has been driven by concerns about the potential widespread adoption of stablecoins, particularly during President Donald Trump's administration. This could disrupt traditional deposits and transactions. The risk is especially significant if major tech companies or large retailers adopt them.
Meanwhile, discussions arise amid the country's growing focus on regulating the sector through the GENIUS Act. Despite opposition, the bill passed a closure vote earlier this week, with 16 Democrats switching their vote in favor. The GENIUS Act is now heading to the Senate for a final vote.
“Next week, the U.S. Senate will vote on the GENIUS stablecoin law – it will be approved,” published Bankless founder Ryan Sean Adams.
Adams believes that the approval of the bill will trigger a massive issuance of stablecoins as fintech companies, banks, and social media platforms move quickly to adopt them. He noted that most of these entities already have the necessary infrastructure and have been waiting for regulatory approval.
“Stablecoins are not the future, they are the present. Digital assets can facilitate payments 365 days a year, without additional costs.”
Market projections underscore this urgency. The U.S. Treasury has predicted that the stablecoin market could increase to $2 trillion by 2028. Additionally, Citigroup's forecast envisions a market capitalization of $3.7 trillion by 2030.
