Major U.S. Banks Eye Joint Stablecoin to Challenge USDT Dominance
In a significant development for the cryptocurrency market, leading U.S. banks including JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo are reportedly in early-stage discussions to collaborate on a bank-backed stablecoin initiative. This move could potentially disrupt the current stablecoin landscape dominated by crypto-native offerings like Tether’s USDT and Circle’s USDC. According to The Wall Street Journal, these discussions remain fluid with no formal commitments yet made. The involvement of these traditional financial giants signals growing institutional interest in digital assets, particularly in the stablecoin sector which has seen exponential growth in recent years. JPMorgan, while leading these private sector efforts, continues to maintain a cautious public stance on stablecoins, reflecting the delicate balance between innovation and regulatory compliance in the banking sector’s approach to cryptocurrency. This development comes at a time when stablecoins are increasingly being recognized for their potential to bridge traditional finance and decentralized ecosystems, with USDT currently maintaining its position as the most widely adopted stablecoin by market capitalization. The potential entry of major banks into this space could bring enhanced credibility, regulatory compliance, and institutional adoption to stablecoin technology, while potentially reshaping the competitive dynamics of the cryptocurrency market.
Major U.S. Banks Explore Joint Stablecoin Initiative Amid Crypto Market Growth
JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo are in preliminary discussions to collaborate on a bank-backed stablecoin, potentially challenging established crypto-native offerings like Tether’s USDT and Circle’s USDC. The Wall Street Journal reports these talks remain fluid, with no formal commitments.
Despite leading the private sector push, JPMorgan maintains a cautious public stance on stablecoin adoption. The bank recently dismissed projections of a $1 trillion stablecoin market as "far too optimistic," creating a paradoxical narrative around institutional crypto engagement.
Market observers note the apparent contradiction. "You can smell the FOMO," remarked Chris Burniske of Placeholder VC, highlighting the banking sector’s strategic dilemma—public skepticism versus private innovation.
Flipster Launches APR Supercharge With Up to 122% Yield on USDT
Flipster, a global cryptocurrency trading platform, has introduced APR Supercharge, a limited-time campaign offering yields as high as 122% on USDT deposits. The initiative, running from June 1 to June 14, 2025, merges deposit rewards with trading incentives to attract active users.
Participants earn a 20% base APR on new net deposits across all supported networks. By achieving a daily trading volume of at least 250,000 USDT and depositing via TON or Aptos networks, users can unlock an additional 80% APR boost—potentially reaching 100% APR. These rewards are stackable with Flipster’s existing Earn Campaign, which offers up to 22% APR on USDT balances.
$2.5M Gone in Hours — Victim Hit Twice in Sophisticated Stablecoin Phishing Scam
A crypto investor lost $2.6 million USDT in a sophisticated phishing attack on May 26, 2025, falling victim twice within three hours. The scam exploited Ethereum’s transaction history through zero-value transfers, raising concerns about address verification practices among seasoned traders.
The attackers first drained $843,000, followed by $1.75 million, using Ethereum’s transferFrom function to spoof transactions. Cyvers’ report highlights how the scam manipulated on-chain data, exposing potential blind spots in wallet security protocols.
This incident underscores the evolving sophistication of crypto scams, particularly targeting stablecoin holders. The double-hit nature of the attack suggests scammers are refining techniques to bypass conventional security checks during time-sensitive transactions.
