JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are in talks about the publication of Stablecoin, according to people familiar with the topic of The Wall Street Journal. The talks are extended to communal banking companies, including early warning services, the parent company of Zelle and The Clearing House. The conversations are still preliminary and may not end as expected. Any final decision depends on the upcoming encryption legislation.
Crypto Contest is concerned about traditional banks
Traditional banks are worried that digital coins could erode their control into customer deposits and payment processing. Technology companies and encryption platforms have gained ground in areas where banks have previously dominated. Regulatory uncertainty over the last two years has allowed encryption companies to proceed, while banks remained careful about entering the market for digital assets. People can now have access to Best encryption platformwhich has pulled millions of users, letting them participate in thousands of different cryptocurrencies while maintaining control of their private keys. They sweep hundreds of validers to find the best prices and allow users to choose from returns, locking periods and pay, creating a comprehensive ecosystem that banks now consider competitive. The optimistic regulatory environment weighs in banks because encryption companies are now looking for banking maps.
Senate moves in Stablecoin rules
On March 13, 2025, the US Senate Banking Committee voted for the guidance and establishment of national innovation for US Stablecoins of 2025 or the “Genius Act”, out of the committee with a 18-6 vote. The bill would create the first federal framework for payment stables in America. But the legislation hit a wall in May. The legislation failed to proceed, with 49 senators voting against and 48 in favor, when the Democrats received support for concerns about ethics. Senate Democrats, including Massachusetts Senator Elizabeth Warren and Virginia’s Mark Warner, are concerned about possible conflicts of interest due to the involvement of the US President’s encryption, especially in the light of the participation of President Donald Trump’s family. The secretary of the Ministry of Finance Scott Bessent later criticized the legislators that he lost what he called for an opportunity to expand the dollar’s sovereignty.
International race is heated
Other countries are moving faster. For example, the European Union has adopted extensive encryption regulations, such as its markets in encryption regulation (MICA). Standard Chartered’s Hong Kong branch founded a consortium with Animoca and HKT trade signals to apply for license from Hong Kong’s monetary authority to issue a Stablecoin backed by Hong Kong dollars. MUFG, SMBC and Mizuho, the three largest banks in Japan, have joined a pilot program called “Project Pax” to use Stablecoins for international transactions. The world market Stablecoin reached a record of $ 187.5 billion in market capitalization in 2024, with Stablecoin’s volume hitting $ 27.6 trillion last year, exceeding the combined Visa and Mastercard.
Banks see the payment opportunity
Banks see their potential to improve their activities, with international remittances taking days through the traditional system. Stablecoins, designed to maintain a value one by one with traditional coins such as the US dollar, are usually supported by cash reserves or high quality assets, such as the Treasury securities. Stablecoins are digital assets with values based on another asset such as a commodity or traditional currency and can settle transactions in seconds. Current market leaders show the scope of the opportunity. Tether (USDT) maintains a $ 144 billion market ceiling while the second placed USDC, issued by a circleIt is approaching $ 60 billion, which is an increase of $ 25 billion from the elections. Standardized analysts led by Geoff Kendrick predicted that the total Stablecoin bid could increase from $ 230 billion today to $ 2 trillion by the end of 2028.
Consortium model under discussion
An idea in the talks of the consortium is a Stablecoin model that banks outside the group can access. Regional institutions have also made the same efforts, although these efforts face greater challenges due to restrictions on resources and the complexity of regulatory navigation. Clearing services and early warning services would probably play central roles in any joint project. EWS is jointly owned by seven large US banks, including JPMorgan Chase, Bank of Americaand Wells Fargo. The TCH, meanwhile, belongs to two dozen from the largest banks in the world.
Remuneration Contest leads interest
Current Stablecoin services cost more than traditional banking. Today, business customers can be charged fees ranging from 0.1% to 0.2% for Stablecoin conversion services, such as USDC negotiation for websites such as Coinbase. Compared to the FX spreads offered by banks normally for important pairs of coins, which usually range from 0.01% to 0.1% for corporate customers, these fees are significantly higher. Banks believe they can earn these prices by offering while offering familiar, regulated services to their existing customers. Tether brought $ 13 billion in profits in 2024, or about twice as much as BlackRock, the world’s largest asset manager, showing Stablecoin revenue. Since December 2024, Tether has owned $ 157.6 billion in assets, including Gold, Bitcoin and the US.