Wall Street’s Heavyweights Plot Crypto Coup: JPMorgan, BofA in Secret Stablecoin Arms Race
Forget decentralization—the old guard wants in. JPMorgan, Bank of America, and a cabal of banking titans are reportedly scheming to launch a joint stablecoin. Because nothing screams ’trustless’ like a consortium of too-big-to-fail institutions.
Why now? Regulatory cracks in crypto’s wild west have these giants smelling blood—and revenue streams. Their play? A regulated, bank-backed digital dollar that could muscle out Tether and USDC. The irony? Using blockchain to rebuild the very monopolies crypto aimed to dismantle.
Watch for the rollout: expect glossy whitepapers, ’compliant innovation’ buzzwords, and at least one executive calling it ’the PayPal of Web3.’ Meanwhile, Bitcoin maxis are already sharpening their ’told-you-so’ tweets.
Traditional Banks Dive Into Stablecoin Market
The report revealed that the discussions involve companies co-owned by these banks, such as Early Warning Services and the Clearing House. However, these talks remain in the early stages.
The outcome WOULD depend on the progress of stablecoin legislation and market demand. Notably, Bank of America’s CEO hinted at a possible stablecoin launch back in late February.
Now, this latest initiative reflects a broader shift within the banking sector. It has been driven by concerns over the potential widespread adoption of stablecoins, particularly during President Donald Trump’s administration.
This could disrupt traditional deposits and transactions. The risk is especially significant if big tech companies or major retailers adopt them.
“The banking industry is in catch-up mode in the crypto space after a regulatory crackdown two years ago,” WSJ noted.
Meanwhile, the conversations emerge amid the country’s increased focus on regulating the sector through the GENIUS Act. Despite the opposition, the bill passed a cloture vote earlier this week, with 16 democrats changing their vote in favor. The GENIUS Act now heads to the Senate for a final vote.
“Next week the US senate will vote on the GENIUS stablecoin act – it will get passed,” Bankless founder Ryan Sean Adams posted.
Adams believes the bill’s passage will trigger a massive issuance of stablecoins as fintech companies, banks, and social media platforms MOVE quickly to adopt them. He noted that most of these entities already have the required infrastructure and have been waiting for regulatory approval.
Wyoming Senator Cynthia Lummis also stressed the significant impact of the proposed legislation.
“Stablecoins aren’t the future, they’re the present. Digital assets can facilitate payments 365 days of the year, without the extra costs,” she wrote.
She described the act as a ‘thoughtful and well balanced approach’ necessary for the US to preserve and expand its leadership in financial investments. Lummis emphasized that maintaining American dominance in digital finance is crucial and called for efforts to ensure that leadership stays within the US rather than moving to other nations.
Market projections underscore this urgency. The US Treasury has predicted that the stablecoin market could surge to $2 trillion by 2028. Furthermore, Citigroup’s forecast envisions the market capitalization at $3.7 trillion by 2030.
This anticipated growth highlights the transformative potential of stablecoins and the strategic importance of regulatory and market positioning for traditional financial institutions.
