Wall Street’s Crypto Endgame: Major US Banks Plot Coordinated Stablecoin Assault

Forget Bitcoin ETFs—the real institutional crypto invasion starts now. JPMorgan, Bank of America, and Citigroup are reportedly finalizing plans for a joint dollar-pegged stablecoin, signaling Wall Street’s latest attempt to co-opt decentralized finance.

The move comes as regulators finally acknowledge what crypto natives knew years ago: blockchain settlement beats SWIFT’s 1970s infrastructure. But don’t expect these bankcoins to champion financial freedom—just tighter control with better tech.

Bankers love stablecoins’ 24/7 settlements but hate losing the toll-booth revenue. This coordinated play lets them eat DeFi’s lunch while keeping the gravy train running. The ultimate irony? Using crypto to protect the very system it was designed to disrupt.

Detailing the Joint Stablecoin Project

Wall Street Journal citing sources familiar with the discussions said that participants in the conversation include entities linked to JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other leading banks.

So far, the initiative is still in its exploratory phase, with no official confirmation or final agreement announced. However, discussions reportedly center around a stablecoin model involving The Clearing House, a real-time payments consortium, and Early Warning Services, the fintech firm responsible for the widely used Zelle payment platform.

The proposed coin WOULD likely be designed for use across participating banks, but one version of the plan would allow broader access to the crypto stablecoin by other institutions beyond the core group of issuers.

SPOILER ALERT: JP Morgan, BofA, Well Fargo, and Citi (the 4 largest US banks) getting together to announce a joint stablecoin is just a move in an overall strategy that will lead to Tether and USDC being acquired by these large banks.

The STABLE and GENIUS Acts construct…

— Aaron Day (@AaronRDay) May 23, 2025

Crypto Regulatory Shifts Encourage Stablecoin Development

The banking sector’s growing interest in stablecoins follows a broader regulatory push in the United States to bring clarity to the status and use of these digital instruments. The Senate recently advanced the Guiding and Establishing National Innovation for US Stablecoins Act, or the GENIUS Act, which seeks to implement a formal legal framework for the issuance and oversight of stablecoins.

The bill would require that stablecoins be fully backed by reserves such as US dollars or equivalent liquid assets, and mandate regular audits for issuers with large market capitalizations.

If passed, the GENIUS Act could become the first significant federal legislation on stablecoins in the United States. Provisions in the bill also address cross-border issuance and operational transparency, key issues that have long concerned both lawmakers and market participants.

The legislative momentum appears to be opening doors for traditional financial players, who have so far mostly remained on the sidelines of crypto asset innovation due to unclear or inconsistent regulations.

The idea of a bank-issued stablecoin is not entirely new. JPMorgan, one of the firms mentioned in the report, already operates JPM Coin for institutional clients, but a broader initiative involving multiple banks and a potentially public-facing token would represent a more expansive effort.

Meanwhile, smaller regional and community banks are also said to be evaluating the potential of forming a separate consortium focused on similar goals, reflecting widespread interest in blockchain settlement mechanisms.

Featured image created with DALL-E, Chart from TradingView