Wall Street Giants JPMorgan, BofA, Citi, Wells Fargo Plot Stablecoin Coup—Because What’s Finance Without More Tokens?

Four of banking’s heaviest hitters are reportedly circling a joint stablecoin play—because nothing says ’innovation’ like legacy institutions scrambling to catch the crypto wave.

Sources whisper the group aims to launch a dollar-pegged digital asset, hedging against private-sector stablecoins (looking at you, Tether) and CBDC creep. Because if you can’t beat ’em, tokenize ’em.

The move reeks of defensive strategy—banks finally realizing that 24/7 settlement and programmable money might just be... useful. Even if they’re a decade late to the party.

Lawmakers Move Closer to Defining Ground Rules for US Digital Payment Tokens Market

The renewed interest comes as US lawmakers make headway on a long-awaited regulatory framework. This week, the Senate advanced the GENIUS Act, a bipartisan bill that lays out oversight rules for both banks and nonbanks issuing stablecoins.

The act introduces reserve requirements, transparency standards, and places issuers under the Bank Secrecy Act, aiming to promote safer adoption while maintaining the US dollar’s global role.

The bill’s progress is seen as a green light for institutions that had previously been hesitant after regulators clamped down on crypto activity in 2022. Bank executives now view stablecoins as a legitimate tool to modernize cross-border transfers, reduce transaction times, and compete with digital offerings from tech giants and crypto startups.

Banks Weigh Stablecoin Entry as Pressure Mounts From Policy Shifts and Rivals

Stablecoins, typically pegged one-to-one with fiat currencies and backed by liquid reserves, are already central to crypto trading and settlements. For banks, issuing their own version could allow them to retain control over payments infrastructure as digital dollars become more common.

One model under discussion could allow broader access, letting banks beyond the consortium use the stablecoin. Meanwhile, some smaller regional banks have floated the idea of a separate stablecoin initiative, though such an effort would likely face scalability and regulatory hurdles.

The timing is crucial. With President Trump’s administration openly supportive of digital finance and his family’s firm launching its own stablecoin earlier this year, banks are under pressure to act. A clear legal framework could reshape the landscape, favoring compliant issuers and prompting a wave of innovation from legacy institutions.