As intense debates unfold in Congress regarding digital asset regulation, heavyweight players in traditional finance are quietly focusing their attention on the stablecoin market, particularly the movements of JPMorgan Chase and Citigroup, which are especially noteworthy.
On Tuesday, July 15, JPMorgan Chase CEO Jamie Dimon revealed in an earnings call that JPMorgan Chase, with $3.6 trillion in assets, has prioritized 'participating in the stablecoin sector.' Dimon stated that part of the reason for JPMorgan Chase's move is the competitive pressure felt from fintech companies. Currently, fintech companies are increasingly developing and attempting to replicate the functions of the traditional financial system, prompting JPMorgan Chase to actively seek change. Dimon noted, 'We will dive into JPMorgan's deposit coin and stablecoin business, aiming to thoroughly study and fully grasp this technology. I believe stablecoins do have practical value; I just don’t understand why some people choose stablecoins when they can pay directly.'
Coincidentally, on the same day, Citigroup also announced its plans to enter the stablecoin market. Citigroup CEO Jane Fraser stated in a conference call following the earnings report on Tuesday that the bank is carefully considering the issuance of stablecoins to promote the development of its digital payment business. Fraser said, 'We are exploring the issuance of a Citigroup stablecoin, but perhaps more importantly, the tokenization of deposits, where we have already been quite active, presents a great opportunity for us.'
As early as May 2025, The Wall Street Journal reported that a group of large banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, were considering a joint issuance of stablecoins. It now seems that this plan is gradually taking shape, with actions from these banks indicating optimism about the prospects of the stablecoin market.
The improvement of the regulatory environment in the United States has also become an important factor driving banks' interest in the stablecoin sector. The bill aimed at regulating stablecoins and their issuers (Guidelines and Establishment of the U.S. National Innovation Act for Stablecoins) (GENIUS Act) has been passed by the Senate and is currently under review by the House of Representatives. During Congress's 'Crypto Week,' President Trump called for the passage of this bill, stating that dollar-pegged stablecoins are generally seen as an effective way to enhance the global dominance of the U.S. dollar.
From market data, the market capitalization of stablecoins shows a significant growth trend. According to DefiLlama data, the current market capitalization of stablecoins has reached $258 billion, growing by 58% from $163.3 billion on July 16, 2024. Some observers believe that stablecoins, with their convenience, speed, and simplicity, have become the first mainstream application scenario for cryptocurrencies, with an increasing number of businesses and individuals globally adopting stablecoins for transactions, which has also attracted the attention of traditional financial giants.
JPMorgan Chase's previously launched deposit coin is a proof-of-concept token issued on a public blockchain, which the bank positions as an alternative to cash payments and settlements, currently only open to institutional clients. The recent moves by JPMorgan Chase and Citigroup in the stablecoin field may bring a new landscape to the stablecoin market. The entry of traditional financial giants is expected to inject more funds and resources into the market, while also potentially intensifying market competition and further refining regulatory policies.
