Recent discussions among America’s largest banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, signal a strategic pivot towards the cryptocurrency landscape. According to a report from the Wall Street Journal dated May 22, these banks are contemplating the development of a joint stablecoin aimed at competing with the rapidly evolving crypto industry.
The ongoing conversations reportedly involve bank-owned payment platforms, including Zelle operator Early Warning Services and the Clearing House. It is essential to note that the concept is still in its nascent stages, contingent upon forthcoming stablecoin legislation and market demand.
EVERYONE WANTS A PIECE OF THE PIE.
JP MORGAN, WELLS FARGO, AND CITI BANK WANT TO LAUNCH THEIR OWN U.S. BANK-BACKED STABLECOIN.
THIS COULD BE GREAT FOR ADOPTION.
HORRIBLE FOR DECENTRALIZATION.
BUT CRYPTO ISN’T GOING ANYWHERE. pic.twitter.com/XLBSKI45tm
— Kyle Chassé / DD (@kyle_chasse) May 23, 2025
The recent report follows a significant legislative step on May 20, when the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act progressed in Congress, paving the way for further discussion surrounding stablecoins. Concerns among American banks are growing that, under changing regulatory landscapes, stablecoins could attain widespread adoption, threatening traditional banking operations such as customer deposits and transaction volumes.
Historically, stablecoins have been touted as a potential boon for expediting routine transactions like cross-border payments, which currently suffer from inefficiencies tied to conventional banking systems. The momentum of banks’ interest is evident as they react to an evolving financial ecosystem.
“The possibility of Wall Street’s traditional powers teaming up to issue their own stablecoin marks the latest sign that mainstream and crypto finance are inching closer together,” the WSJ reported.
Increased Competition for Cryptocurrency Issuers
Leading figures within the crypto space are predicting that this move could herald significant challenges for existing crypto stablecoin issuers such as Circle. BitMEX founder Arthur Hayes expressed skepticism regarding the competitive viability of such entities in light of the new joint bank initiative.
Bye bye Circle. Thanks for playing. https://t.co/LmFPrv6KZK
— Arthur Hayes (@CryptoHayes) May 23, 2025
Despite the ambitious outlook of U.S. banks, it remains questionable whether they can effectively rival existing global stablecoins, which often have fewer barriers to entry for users. Current estimates place the crypto stablecoin market at approximately $248 billion, marking 7% of the overall crypto market, and this segment appears poised for substantial growth.
Supported by research from the U.S. Treasury, it is predicted that the stablecoin market could reach a staggering $2 trillion by 2028, reflecting a more than eightfold increase from current levels. As banks explore their options, the future of both traditional finance and crypto finance is increasingly intertwined, leading to a new era of financial evolution.
The original blog post titled Major US Banks Mulling Joint Stablecoin Venture: Report first appeared on CryptoPotato.
