Some of the biggest banks in the United States are exploring the possibility of forming a consortium to issue a joint stablecoin, according to The Wall Street Journal, in a move aimed at countering increasing competition from the cryptocurrency sector.
Top US banks reportedly exploring joint stablecoin to rival crypto challengers
The discussions reportedly involve firms co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major commercial banks. Key players include Early Warning Services — the operator of peer-to-peer payment app Zelle — and The Clearing House, which runs a real-time payments network.
Sources cited by the Wall Street Journal said the talks are still in early, conceptual stages and may evolve depending on future regulatory developments, especially legislation around stablecoins.
Stablecoins — a type of cryptocurrency pegged to a fiat currency like the US dollar — are increasingly used for transferring digital assets quickly and with minimal fees. Backed by cash or cash-equivalent reserves such as US Treasuries, they function as digital dollars in crypto markets.
Banking giants are reportedly assessing whether their own version could be used for faster payments, such as cross-border transactions that currently take days through traditional systems.
One model under discussion would allow non-member banks to utilise the stablecoin, creating a wider ecosystem. However, some regional and community banks are also weighing a separate consortium, although such a move may be more challenging due to scale and regulatory burdens.
Stablecoins promise a safe haven from the wild price swings of cryptocurrencies. But the collapse of stablecoin TerraUSD has called that idea into question.
Trump administration pushes crypto mainstream
The talks come as President Donald Trump positions himself as the so-called "crypto president," advocating for mainstream crypto adoption and promoting its role in enhancing the banking system and reinforcing dollar dominance.
Banks are increasingly concerned that stablecoins — especially if adopted by big tech firms or major retailers — could siphon off deposits and transactions from traditional institutions.
After a regulatory crackdown on digital assets two years ago, the traditional financial sector is now trying to catch up.
Last month, WSJ reported that several crypto firms were preparing to apply for banking charters or licences, buoyed by a new bill — the GENIUS Act — aimed at setting a framework for both banks and nonbanks to issue stablecoins.
The US Senate recently cleared a procedural step on the bill.
According to a memo by law firm Paul Hastings, the latest version includes restrictions on non-financial public companies issuing stablecoins — but not an outright ban, which banking lobbyists had pushed for.
