Major U.S. Banks, Including JPMorgan, Discuss Joint Stablecoin Launch — WSJ

Major U.S. banks are exploring the launch of a joint stablecoin, according to a report by WSJ. The talks involve JPMorgan, Bank of America, Citigroup, and Wells Fargo, in collaboration with payment networks The Clearing House and Early Warning Services, the operator behind Zelle. These banks aim to develop a framework that aligns with evolving regulatory standards.

Currently, the discussions remain preliminary and depend on the outcome of stablecoin legislation under review in Congress. This week, the Senate voted to advance the GENIUS Act; however, lawmakers are still negotiating amendments and the bill’s final language.

Talks Among Major U.S. Banks

During internal meetings, representatives from participating banks discussed the technical and operational framework for issuing a digital dollar. The plan envisions a unified infrastructure under which each institution could issue its own stablecoin as part of a broader consortium.

Related: JPMorgan Enables Bitcoin Buying for Clients, But Custody Excluded

Sources familiar with the matter note that the final shape of U.S. stablecoin regulation will play a critical role in shaping the project’s future. For now, the initiative remains in an exploratory phase—no official statements have been made, and the banks have not committed to a specific launch timeline.

Stablecoin Market Outlook

On May 20, the U.S. Senate voted to advance the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) to the debate stage. The proposed legislation requires that all stablecoins be fully backed by U.S. dollars or high-liquidity assets, and require annual audits for issuers with a market cap exceeding $50 billion.

Related: Coinbase’s Top Policy Exec Breaks Down What the GENIUS Act Really Means

Meanwhile, Democrats are pushing for amendments aimed at preventing individuals connected to the government or national public figures, including Donald Trump, from profiting from stablecoins. The move follows criticism surrounding the launch of USD1, a stablecoin issued by Trump’s sons through their World Liberty Financial platform, raising concerns over potential conflicts of interest.

The stablecoin market has grown to $245 billion in total capitalization, up from $205 billion at the start of the year, reflecting a nearly 20% rise in demand. Of that, close to $11 billion is now held in yield-bearing tokens that generate passive income for holders.