Major US banks, including JPMorgan Chase and Bank of America, are in preliminary talks to launch a joint stablecoin to remain competitive amid rising pressures from cryptocurrencies.
Bank Coalition for Stablecoin Launch
Top American banks such as JPMorgan Chase and Bank of America are engaged in discussions about launching a joint stablecoin. This effort aims to respond to the growing competition posed by cryptocurrencies and digital assets. Sources indicate that bank-led consortia like Early Warning Services, known for operating the Zelle payments network, are central to this initiative.
Legislative Changes: GENIUS Act
The stablecoin initiative coincides with the advancement of the GENIUS federal bill, aimed at facilitating stablecoin issuance. Senator Cynthia Lummis underscored the importance of this legislative effort, stating that digital assets can facilitate payments without additional costs. Experts suggest that the law will provide legitimacy for a broad issuance of stablecoins from banks and fintech platforms.
Banks Leading in Crypto Innovations
Traditional banks, facing threats from large-scale stablecoins and tech competitors, are beginning to adapt to the new market conditions. Forecasts indicate that the stablecoin market could reach $2 trillion by 2028, prompting banks to take action. These changes not only strengthen the positions of banks but also help them remain competitive in a rapidly evolving financial environment.
In summary, the initiative by major US banks to create a joint stablecoin, along with support for legislation like the GENIUS Act, highlights shifts in the financial landscape aimed at enhancing the competitiveness of traditional banks amid the rising popularity of digital assets.
