Leading U.S. banks — JPMorgan, Bank of America, Citigroup, and Wells Fargo — are in preliminary discussions about launching a joint stablecoin. The Wall Street Journal reported this on May 22, citing sources familiar with the talks. The project is still in its early stages, and its fate will depend on the regulatory environment and market demand.
Who Is Involved in the Development
In addition to the banks, entities from the digital payments sector may also join the initiative. Potential participants include Early Warning Services — the parent company of the Zelle payment system — and the Clearing House payment network.
JPMorgan declined to comment officially, and representatives from the other banks did not respond to journalists' inquiries.
Stablecoins in the Context of Regulation and Political Pressure
The discussions come amid growing interest from both private and public entities in dollar-pegged digital currencies. Since the beginning of the year, the total market capitalization of stablecoins has risen from $205 billion to $245 billion — a 20% increase.
On May 20, the U.S. Senate voted to advance the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), which regulates the issuance and backing of stablecoins. The bill mandates compliance with anti-money laundering laws and establishes standards for reserve assets.
According to White House crypto advisor David Sacks, the bill is likely to receive bipartisan support. However, members of the Democratic Party have proposed an alternative bill, the MEME Act, which would prohibit President Donald Trump, members of Congress, and their families from creating or promoting digital assets.
This amendment is linked to the launch of World Liberty Financial, a crypto platform created by Trump’s family that introduced its own stablecoin, USD1, in March. Critics fear the new law could create opportunities for personal gain through regulation influenced by Trump and his allies.
In response, the Senate Permanent Subcommittee on Investigations (PSI) has launched a probe into Trump’s crypto activity.
Banks Feel Pressure From the Crypto Market
According to New York University professor Austin Campbell, traditional banks are feeling pressure due to the rising share of stablecoins. He noted that banks are concerned — yield-bearing stablecoins now represent around 4,5% of the total market, with a combined supply of $11 billion.
Investor and entrepreneur Kevin O’Leary also warned of growing conflict between traditional currency markets and the crypto industry. He stated that international Forex payment systems are trying to block stablecoin regulations that could disrupt established cross-border transaction models.
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