Wall Street’s Power Play: US Banking Giants Collude on Joint Stablecoin

Forget decentralization—the old guard just made their move.

In a plot twist nobody saw coming (except everyone paying attention), JPMorgan, Bank of America, and Citigroup have quietly formed a consortium to launch a regulated stablecoin. Because nothing says ’trustless’ like a cartel of Too-Big-To-Fail institutions issuing digital IOUs.

The details? Scarce. The irony? Thick enough to slice. While crypto natives built alternatives to fractional reserve banking, the banks decided to fractional-reserve the blockchain instead. Early specs suggest the coin will be 1:1 dollar-backed—assuming you ignore the 10x leverage hiding in the fine print.

Launch is slated for Q1 2026, conveniently timed to undercut CBDC efforts. Because when you can’t beat ’em, co-opt ’em with a 2% transaction fee.

Big U.S. banks plan a shared stablecoin to speed up digital payments

JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo have started early discussions about creating a joint stablecoin or digital dollar to help them keep up with fast-growing cryptocurrency firms and large tech companies moving into financial services.

These talks are in collaboration with Early Warning Services, the company behind the popular person-to-person payment app Zelle, and the Clearing House, which manages a real-time payments system.

The talks remain unofficial and exploratory because the banks are only sharing ideas and may change or even cancel the plan depending on how much customer demand they see or how federal laws around digital currencies evolve in the coming months.

The banks are moving cautiously because the U.S. government is still debating how to regulate stablecoins and other digital assets.

This new stablecoin WOULD be a digital version of the U.S. dollar, where each token or coin would always be worth one dollar and backed by reserves like cash or U.S. Treasurys. It would allow customers and businesses to send money faster on cross-border payments, which take several days to clear in the traditional banking system and come with high fees.

Banks want to protect their roles in everyday financial transactions because many customers today use crypto apps and platforms instead of banks to store value and transfer money.

At the same time, smaller regional and community banks monitoring these developments have shown interest in starting their own version of a joint stablecoin. 

However, experts warn that this could be much harder to achieve since building and maintaining a secure and reliable digital currency system is costly. It would require advanced technology, regulatory expertise, and significant financial investment, which smaller institutions may be unable to afford independently.

Rules, customer demand, and politics shape the banks’ next steps

Big banks closely monitor the GENIUS Act as the U.S. Senate cleared a key procedural step this week, bringing it closer to becoming law. The bill would allow both banks and nonbank companies to issue stablecoins under a uniform set of rules.

The bill also includes restrictions on public companies outside of the financial sector but doesn’t completely block them from launching their own stablecoins. This detail is essential to banks because they lobbied for tighter limits to prevent big tech firms and retailers from grabbing a large share of customers in the stablecoin market.

Political momentum is also pushing banks to take digital assets more seriously, with President Donald TRUMP making several pro-crypto statements and even calling himself the “crypto president.”  

Trump launched his own meme coin and announced in March that his family-linked company, World Liberty Financial, also plans to release a stablecoin. These actions pressure banks to step up their digital strategies before they lose ground to more aggressive and flexible players.

Several crypto-native firms are working to get formal banking charters, and they believe the GENIUS Act could make that easier. 

These firms could start offering full-service banking products, including loans, savings, and payment tools if they become legally recognized financial institutions.

Banks now face the possibility of being left behind if they do not adapt to these changes and build their digital alternatives.

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