The post Wall Street Banks Weigh Joint Stablecoin Venture Amid Growing Crypto Competition appeared on BitcoinEthereumNews.com.

A group of the largest U.S. commercial banks is reportedly in early discussions about launching a joint stablecoin, according to a Wall Street Journal report.  Major U.S. Banks Explore Stablecoin Collaboration The potential project signals a strategic move by traditional financial institutions to navigate the evolving digital currency landscape, after years of regulatory caution kept them on the sidelines. The talks involve companies co-owned by banking heavyweights JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, as well as payments operators like Early Warning Services, which is the firm behind peer-to-peer payment app Zelle, and the Clearing House, which runs a real-time payments network.  While no formal announcement has been made, unnamed sources familiar with the matter suggest that banks are increasingly concerned about ceding transactional control to the growing cryptocurrency sector. Shifting Financial Landscape The impetus behind this initiative appears less about innovation and more about safeguarding existing market share. Stablecoins are digital assets pegged to the U.S. dollar. They have gained significant traction as efficient tools for money movement, particularly for cross-border transactions. Banks fear that, if left unchecked, stablecoins backed by crypto firms, technology giants, or large retailers could siphon away deposits and disrupt their longstanding dominance in the payment ecosystem. A Defensive Strategy Industry insiders believe a bank-led stablecoin could serve as a counterweight to this emerging threat. One model under consideration reportedly involves a shared stablecoin infrastructure accessible not just to the consortium’s founding banks but to other financial institutions as well. Regional and community banks have also explored the possibility of forming a separate stablecoin initiative to avoid being marginalized in a rapidly digitizing financial environment. Regulatory Developments and Political Tailwinds The timing of these deliberations is significant. The U.S. Senate recently advanced the GENIUS Act, legislation aimed at establishing a comprehensive regulatory framework…

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Filed under: News - @ May 25, 2025 1:26 am