Major US Banks Explore Joint Stablecoin to Defend Against Crypto Disruption
Major US banks, including JP Morgan Chase and Bank of America, are in early talks to create a shared digital asset, a stablecoin, to defend their territory against potential disruptions from crypto. This comes as President Trump's pro-crypto stance and family's stablecoin involvement may be encouraging traditional finance to act.
The discussions, still in their infancy, hinge on factors like regulatory clarity and market demand. The US Senate's recent advancement of the GENIUS Act, a bill to regulate stablecoin issuance, may be influencing these talks. The banks, which also include Citigroup and Wells Fargo, are exploring this move to prevent stablecoins from siphoning away deposits and disrupting their dominance in transactions.
Meanwhile, across the Atlantic, a consortium of major European banks, such as Dekabank and ING, are forming to launch a blockchain-based Euro stablecoin by the second half of 2026. This stablecoin, to be supervised as an e-money institution in the Netherlands, could significantly streamline cross-border payments. The potential alliance amongst rivals highlights the utility of stablecoins as an efficient mechanism for moving money.
These early discussions signal a significant shift in the financial landscape, with traditional banking giants exploring the issuance of a joint stablecoin. As regulatory frameworks evolve and market demand grows, this move by major banks could redefine the intersection of finance and crypto, potentially streamlining transactions and defending their territory against stablecoin disruption.
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