It’s safe to say that the surge in stablecoin adoption has not gone unnoticed by the banks. Several of the largest banks in the US are reportedly in early talks to launch a joint stablecoin, aiming to challenge the popularity of crypto and digital payment solutions.
“The conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks, according to people familiar with the matter,” confirmed the Wall Street Journal in a 22 May 2025 report.
The project is in its conceptual phase and hinges on evolving regulatory frameworks, particularly the new stablecoin legislation. The consortium would involve Early Warning Services and The Clearing House, both pivotal players in the US payments infrastructure.
WALL STREET STABLECOIN?
JPMorgan, BofA, Wells Fargo, and Citi are exploring a joint crypto stablecoin.
But if banks control the network… how is this NOT a CBDC? 
Decentralization on the line.#stablecoin #RLUSD #usdt pic.twitter.com/t7EbYjHjbx
— AltcoinPro (@AltcoinPro_) May 23, 2025
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Wall Street Stablecoin in the Making?
Big banks are teaming up to create a joint stablecoin.
Because nothing says “we understand crypto” like a committee of suits trying to reinvent the wheel.
Stay tuned for the launch of “BankCoin”—coming soon to a bureaucracy near you. pic.twitter.com/djjxdbaGSw
— Surge (@WeSurgeNow) May 23, 2025
In recent years, stablecoins have become a preferred vehicle for fast, low-cost transfers, especially in cross-border settings where traditional banking systems can be cumbersome.
As crypto-native firms and even big tech companies eye the stablecoin market, US banks are increasingly concerned about losing deposits and transaction volume to the new digital challengers. Hence, a Wall Street stablecoin could be in the making!
Furthermore, the potential for stablecoins to serve as “digital dollars” threatens the core business of banks, prompting them to consider launching their own alternative.
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GENIUS Act Advances With 66 Votes
The US Senate has advanced the GENIUS Act, a bipartisan bill regulating stablecoins. The legislation passed a procedural vote with 66 in favor and 32 against, signaling strong momentum for regulatory clarity.
The bill aims to set clear guidelines for stablecoin issuers, including 1:1 asset backing, anti-money laundering compliance, and consumer protections. It could help reduce systemic risk and promote more mainstream adoption of crypto-based payment systems if enacted. However, the bill has also drawn scrutiny, particularly concerning US President Donald Trump’s growing ties to crypto. Some critics argue that these ties may introduce potential conflicts of interest, especially if policies are shaped to benefit affiliated ventures.
Still, for market participants, the advancement of the GENIUS Act is largely seen as a step toward legitimacy for digital assets and stablecoins in particular. With Bitcoin nearing its all-time high and institutional interest returning, the regulatory structure may help sustain momentum.
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Key Takeaways
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JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks are contemplating a joint stablecoin to counter crypto competition.
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The potential for stablecoins to serve as “digital dollars” threatens the core business of banks, prompting them to consider launching their own alternative.
The post US Banking Giants Explore Joint Stablecoin to Counter Crypto Competition appeared first on 99Bitcoins.
