Several major U.S. banks plan to jointly launch a stablecoin, progress depends on the legislative process
JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major commercial banks in the U.S. are in preliminary discussions about jointly launching a stablecoin. The institutions involved in the discussions include The Clearing House, jointly owned by several banks, and Early Warning Services LLC, the company behind Zelle.
The stablecoin project is still in its early stages, and progress will heavily depend on upcoming U.S. legislation on stablecoins. The National Innovation and Stablecoin Establishment Act (GENIUS Act) has bipartisan support, requiring stablecoins to be fully backed by U.S. dollars or other highly liquid assets, and stipulating that issuers with a market capitalization exceeding $50 billion must undergo annual audits, while also clarifying terms related to offshore issuance. However, before the bill goes to a final vote, some Democratic lawmakers are calling for further scrutiny of the relationship between Trump and cryptocurrency projects. Reports indicate that Trump and his son have been linked to the World Liberty Financial project, which issues the USD1 stablecoin.