A significant movement is unfolding in the U.S. regarding cryptocurrency. The support for the GENIUS Act in the Senate creates favorable conditions for major banks to issue a stablecoin.
Formation of a Stablecoin Partnership
According to the Wall Street Journal, major banks such as JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup have begun discussions for the launch of a joint stablecoin. The project also involves players like Zelle and the Clearing House’s real-time payment network.
Potential Impact and Implications
It is clear that this new stablecoin could compete with market leaders like Tether and Circle. Currently, Tether dominates with a market share of $152 billion. The introduction of a bank-backed stablecoin may provide levels of trust and regulatory compliance that could disrupt the market, while also posing a risk of centralization in a space designed to be open.
Regulatory Framework for Institutional Crypto
The timing of this initiative coincides with the advancement of the GENIUS Act, which offers a clear regulatory framework for stablecoins. President Trump's pro-crypto stance could significantly accelerate the adoption of stablecoins as banks aim to combine their established trust with the benefits of blockchain technology.
The agreements among banks, along with government support, will be crucial in determining whether this initiative leads to a revolution in the cryptocurrency space or generates a turf war.
