Several major US banks are collaborating on a joint stablecoin project aimed at shaping the future of digital payments - and reclaiming control.
According to a report by the Wall Street Journal, multiple US banks - including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and US Bank - are in talks to develop a shared stablecoin pegged to the US dollar. The tokens are intended to run on an interoperable platform that will be integrated with existing payment systems such as Zelle and the network operated by The Clearing House. The goal: a regulated stablecoin alternative capable of competing with crypto-native rivals like Circle’s USDC and Tether’s USDT.
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Why banks are turning to stablecoins
Over the past few years, stablecoins have become a central component of the digital financial ecosystem. With a current total market volume exceeding 245 billion USD, crypto firms like Tether (USDT) and Circle (USDC) dominate the space. As a result, banks are increasingly being pushed to the sidelines, particularly in the realm of cross-border payments and on-chain transactions.
A proprietary stablecoin would allow banks to offer real-time, 24/7 transactions with reduced settlement risk - without relying on external blockchains. At the same time, they maintain regulatory oversight and customer relationships.
Regulation & future outlook
The initiative could receive a boost from the GENIUS Act - a legislative proposal that would define and authorize stablecoins at the federal level in the US If enacted, this framework could enable banks to bring their own digital dollar products to market more quickly.
While discussions are still in the early stages, the involvement of prominent banks signals a new phase of digital transformation in traditional finance - with stablecoins serving as the connecting element between the crypto space and the banking world.
International interest
Beyond US institutions, banks in Europe and Asia are also closely monitoring the development. The prospect of a regulated, bank-based stablecoin is seen as a potential gamechanger for international payments.
Experts believe a successful US bank stablecoin could serve as a model - especially for central banks that are experimenting with digital currencies (CBDCs) but progressing more slowly. A bank-backed stablecoin could thus become a bridging technology between the traditional financial system and tokenized markets.
