On May 22, the Wall Street Journal reported that the largest US banks — including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo — are in early-stage discussions to create a joint stablecoin. The initiative is still conceptual and hinges on upcoming stablecoin regulation and market demand.

Participants in the talks include bank-owned payment networks like Zelle (Early Warning Services) and Clearing House.

📄 Sources say banks are increasingly worried about losing control over deposits and transaction volumes — particularly under a pro-crypto Trump administration — as stablecoins gain momentum in the digital economy.

The timing aligns with the recent introduction of the GENIUS Act (Guidance and National Innovation in US Stablecoins), which passed a Senate vote on May 20 and now heads for debate.

Why It Matters

🏛️ Traditional institutions are acknowledging they’re falling behind on innovation. After years of regulatory crackdowns, stablecoins are now seen as essential financial tools — especially for fast cross-border transfers and settlement systems that typically take days.

🔁 A joint effort to build a stablecoin marks a significant convergence between Wall Street and the crypto sector, as noted by WSJ.

A Threat to Existing Players?

💥 BitMEX founder Arthur Hayes suggested this move could undermine private issuers like Circle and Tether. However, analysts point out that access to a “bank-issued” stablecoin would likely be limited by US banking infrastructure and account requirements.

Today, the crypto stablecoin market is valued at $248 billion, or around 7% of the total crypto market. A recent US Treasury forecast suggests the sector could grow to $2 trillion by 2028.

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