Major US banks, including JPMorgan Chase and Bank of America, are discussing the potential creation of a joint stablecoin. This initiative could provoke competition in the growing stablecoin market.
Discussion of Stablecoin Creation
According to a report from *Wall Street Journal*, leading US banks such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are in discussions to form a consortium to issue a joint stablecoin. These talks are in early stages and will depend on forthcoming stablecoin legislation.
New Stablecoin Legislation
Earlier this week, the Senate voted to move forward with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act. If passed, this law will establish regulatory frameworks for stablecoin issuances, requiring them to be fully backed by US dollars or similar liquid assets.
Growing Demand for Stablecoins
The demand for stablecoins is on the rise, with the total market cap reaching $245 billion. Stablecoins like Tether (USDT) and Circle (USDC) hold leading positions. An improved regulatory environment fosters further growth and integration of stablecoins into the financial system.
The creation of a joint stablecoin by US banks could significantly alter the landscape of the cryptocurrency market, providing new opportunities for transaction speeds and competition.
