US Banking Giants Consider Collaborative Stablecoin to Tackle Crypto Rivalry

It’s clear that the increase in stablecoin usage has attracted the attention of banks. Numerous major banks in the US are reportedly in preliminary discussions to create a collective stablecoin, with the goal of competing against the rising popularity of cryptocurrency and digital payment options.

“So far, the discussions have included entities partially owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other prominent commercial banks, as stated by sources familiar with the situation,” reported the Wall Street Journal in a 22 May 2025 article.

The initiative is still in its planning stages and depends on the development of regulatory frameworks, specifically the forthcoming stablecoin regulations. The consortium would include Early Warning Services and The Clearing House, both essential components of the US payments ecosystem.

WALL STREET STABLECOIN?

JPMorgan, BofA, Wells Fargo, and Citi are looking into a collaborative crypto stablecoin.

But if banks are in control of the network… how is this NOT a CBDC?

Decentralization at risk.#stablecoin #RLUSD #usdt pic.twitter.com/t7EbYjHjbx

— AltcoinPro (@AltcoinPro_) May 23, 2025

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Wall Street Stablecoin on the Horizon?

Major banks are collaborating to develop a joint stablecoin.

Because nothing says “we grasp crypto” like a boardroom of executives attempting to reinvent the concept.

Stay tuned for the debut of “BankCoin”—coming soon to a bureaucratic setting near you. pic.twitter.com/djjxdbaGSw

— Surge (@WeSurgeNow) May 23, 2025

In the past few years, stablecoins have emerged as a favored method for rapid, cost-effective transfers, especially in international contexts where traditional banking processes can be sluggish.

As firms rooted in crypto and even major tech companies eye the stablecoin sector, US banks are becoming increasingly worried about losing deposits and transaction activity to these new digital competitors. Thus, a Wall Street stablecoin may be in development!

Moreover, the possibility of stablecoins acting as “digital dollars” poses a threat to the fundamental operations of banks, prompting them to contemplate launching their own versions.

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GENIUS Act Progresses With 66 Votes

The US Senate has moved forward with the GENIUS Act, a bipartisan measure aimed at regulating stablecoins. This legislation received preliminary approval with 66 votes in favor and 32 against, indicating strong base level for regulatory transparency.

The purpose of the bill is to establish clear protocols for stablecoin issuers, encompassing 1:1 asset backing, compliance with anti-money laundering regulations, and protections for consumers. If enacted, it could mitigate systemic risks and facilitate broader acceptance of crypto-based payment systems. However, the legislation has faced criticism, particularly due to increasing connections between US President Donald Trump and the crypto industry. Critics contend that these connections might lead to potential conflicts of interest if policies are crafted to benefit associated businesses.

Nonetheless, for industry stakeholders, the progress of the GENIUS Act is primarily viewed as a positive step toward the legitimization of digital assets, particularly stablecoins. With Bitcoin approaching its peak and institutional interest resuming, the regulatory framework may help sustain the current momentum.

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The article US Banking Giants Explore Joint Stablecoin to Counter Crypto Competition first appeared on 99Bitcoins.