JPMorgan Joins Stablecoin Race: Wall Street Giants Test Next-Gen Digital Dollar Products

Traditional finance's quiet crypto invasion accelerates as JPMorgan quietly pilots blockchain-based payment solutions. The 2008 bailout alumni now want to disrupt money itself - with regulators' blessing.

Wall Street's stablecoin experiments reveal institutional FOMO: When Jamie Dimon bashed Bitcoin as 'worthless' in 2022, he forgot to mention Chase would be minting its own digital dollars by 2025.

The real innovation? Banks finally cutting settlement times from days to seconds - just as crypto natives have done for years. Maybe those 'pet rocks' had some utility after all.

JPMorgan and others test stablecoin products

Stablecoins, for those who need the reminder, are digital tokens pegged to fiat currencies—most often the U.S. dollar. They’re supposed to stay steady in value and act like cash that moves faster, settles instantly, and costs less. They’re not speculative coins like Bitcoin; they’re more like upgraded wire transfers that don’t take three days to clear.

Last month, JPMorgan revealed it’s already rolling out a limited version of its own coin—called a deposit coin—but it’s only for the bank’s private clients. This isn’t a full-blown public stablecoin yet. But it’s a step into the water. “We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said.

He’s not the only one dipping a toe. On the same day as JPMorgan’s call, Citigroup executives said the bank is “looking at the issuance of a Citi stablecoin.” They’re not just stopping there. Citi says the real opportunity lies in tokenized deposits and crypto custody services—two areas where legacy banks have serious muscle to flex if they stop dragging their feet.

And over at Bank of America, CEO Brian Moynihan is also making it clear: the bank will engage with stablecoins. No rollout yet, but the signal is loud enough. When this many top dogs start circling the same space at the same time, it’s never a coincidence.

Big banks watch fintech and prep for team-ups

What’s pushing these banks off the bench isn’t enthusiasm—it’s fear of falling behind. Dimon said Tuesday, “These guys are very smart,” when asked about fintech rivals. “They’re trying to figure out a way to create bank accounts, to get into payment systems and rewards programs, and we have to be cognizant of that.” In other words, the enemy’s not waiting.

These fintech companies are already offering services that traditional banks used to own. They’re fast, they’re global, and they don’t have to deal with 1970s tech like ACH and SWIFT. That alone makes stablecoins a real threat if the banks don’t evolve.

Dimon gets that. He didn’t say it outright, but the MOVE toward stablecoin infrastructure now is a play to stay relevant while rules around digital currencies start getting clearer. Regulation is finally catching up. Banks have the lawyers and capital to dominate once they commit—and now they’re starting to.

There’s also talk of banks joining forces. One route could be to push through Early Warning Services, a firm owned by a group of banks that already gave us Zelle. That instant payments network was the banks’ answer to PayPal and Cash App. A joint stablecoin effort could play out the same way, helping them fight off Silicon Valley’s attempts to eat their lunch.

But Dimon wasn’t giving any details. When asked about a possible collaboration between banks on stablecoins, he said, “That’s a great question, and we’ll leave it remaining as a question.” So yeah, it’s being discussed. Just don’t expect a roadmap yet.

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