According to a report from the Wall Street Journal, several leading financial institutions in the United States are conducting initial negotiations to issue a common stablecoin – a move that marks a significant turning point in how the traditional banking sector approaches digital assets.

In the context of the global financial market increasingly paying attention to blockchain technology and decentralized financial (DeFi) products, banks like JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and several other major names are seriously considering integrating stablecoins into their payment systems.

Initial Moves but Full of Ambition

This stablecoin project is currently in the idea exploration phase, with no official commitments announced yet. However, two key infrastructure organizations, The Clearing House (a real-time payment network) and Early Warning Services (the fintech company behind the Zelle payment platform), have begun discussions about the potential deployment of stablecoin.

Stablecoins issued by these banks will prioritize internal use, serving interbank payment and remittance needs. An expanded version could allow other financial institutions to access and use this token, opening up the potential for standardizing digital payments across the industry.

New Law Paves the Way for Bank Stablecoins

The interest of traditional financial institutions has surged partly due to a significant legislative advance: the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) has just been passed by the US Senate.

This bill imposes strict requirements on stablecoins:

  • Must be fully backed by USD or equivalent liquid assets.

  • Must undergo regular financial audits, especially for issuers with large market capitalization.

  • Regulate both cross-border stablecoin issuance and operational transparency.

If fully approved, the GENIUS Act will become the first and most comprehensive legal framework dedicated to stablecoins in the United States, paving the way for a more legal and secure environment for major financial institutions.

No Longer Standing Outside the Crypto Game

Although traditional banks have previously been cautious about digital assets due to legal risks and high volatility, with increasing legal clarity, they are proactively participating in the game, leveraging blockchain to enhance operational efficiency.

It should be noted that JPMorgan has previously issued JPM Coin – a stablecoin dedicated to institutional clients – but if the banking alliance's plan to issue a common stablecoin is realized, it will be a significant public and much larger scale step.

Not only "big players" on Wall Street, many regional and smaller community banks are also exploring forming their own alliances to build their stablecoin platform, indicating widespread industry interest in blockchain-based financial infrastructure.

🔍 Insights

The collaboration of traditional banks to issue stablecoins could be a historic turning point in the digitization of the global financial system. This is not only a positive signal for blockchain technology but also an indicator that digital assets are gradually being institutionalized, stepping out of the shadow of being a "regulatory outlier" to become a legitimate, transparent, and safer tool for the entire financial system.