Larger US banks weigh the launch of a common stableecoin to avert crypto competition.
Economic heavy weights such as JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC), have been discussing the subject, reported Wall Street Journal and citing people who are familiar with the case. Negotiations are still in early stages and could change, the report added.
Within the consortium are also payments owned by these banking centers, as early warning services operating Zelle, and the Clearing House handling real -time payments.
Stableecoins are cryptocurrencies associated with the value of another asset as a Fiat currency or item, can run transactions in seconds. Banks see potential in them to improve their operations, where international transfers are currently taking days through the traditional system.
An idea that flowed in the consortium’s conversations is a stableecoin model open to other banks beyond the core group. Regional banks have also explored similar trails, adds WSJ and quotes sources that are familiar with the discussions.
Push comes when Washington inches against regulation. The Senate recently stated the guidance and establishment of national innovation for us stableecoin (Genius) Act, as Senator Hagty (R-Tenn) described as one who “establishes the first ever pro-growth regulation framework for Payment StableCoins.”
The improved legislative environment has seen cryptic companies search for banking, which further adds pressure to the banks.
Some of these major financial institutions have already made their steps. Société Générale launched a euro-denominated stableecoin, EURCV, back in 2023 through his crypto arm SG Forge. It is reportedly now looking to launch an American dollar stableecoin as well.
Read more: US StableCOin Bill approval could trigger a long-term crypto bull market: Bitwise
