JPMorgan & Citigroup Double Down on Stablecoins as Regulation Warms Up

Wall Street's old guard is finally waking up to crypto's killer app—stablecoins. JPMorgan and Citigroup are placing big bets, signaling a seismic shift as regulators drop the hostility.

Why now? Because even dinosaurs adapt when survival's at stake.

These banking giants aren't embracing decentralization—they're building toll roads on the blockchain highway. The real surprise? How fast they've pivoted from 'crypto skeptics' to 'stablecoin evangelists' once the SEC stopped playing whack-a-mole.

One insider quipped: 'When Jamie Dimon stops ranting about Bitcoin and starts minting JPM Coin, you know the game's changed.'

Watch for more banks to follow—nothing moves faster than Wall Street chasing a regulated profit stream.

TLDR

• JPMorgan and Citi dive into stablecoins to secure future payment dominance
• Wall Street banks embrace stablecoins as blockchain finance gains traction
• JPMorgan eyes $10T payments edge with blockchain and deposit token push
• Citigroup plans stablecoin to streamline global tokenized banking services
• Stablecoins reshape banking as JPM, Citi race to modernize payments

JPMorgan and Citigroup have intensified their push into the stablecoins market, signaling a shift among top Wall Street banks. These financial giants are preparing for broader adoption as global payment systems evolve and regulations start to support blockchain-based finance.

JPMorgan Steps Up with Deposit Token and Blockchain Tools

JPMorgan is expanding its efforts around stablecoins through two initiatives Deposit Coin and JPM Coin built to streamline client settlements. The bank already processes $2 billion daily using JPM Coin on its proprietary Kinexys blockchain network, formerly known as Onyx. It also piloted JPMD, a deposit token built on Base, a network developed by Coinbase that uses Ethereum.

NEWS: #JPMorgan ( $JPM) is officially entering the stablecoin race with deposit token $JPMD, signaling a major tech shift under Jamie Dimon.

The bank’s MOVE comes right as the US regulatory landscape aligns behind the #GENIUSAct . pic.twitter.com/ewXWDYBpjj

— Roundtable Network (@RTB_io) July 15, 2025

This move comes even though CEO Jamie Dimon still questions the practical value of stablecoins compared to standard payments. However, he emphasized that the bank must participate actively to stay ahead in digital payment innovation. JPMorgan aims to maintain dominance in the $10 trillion daily payments ecosystem by understanding and adapting to stablecoins.

The bank acknowledges that fintechs are using stablecoins to edge into traditional financial infrastructure. These firms are working to replicate Core banking services such as payments, accounts, and loyalty programs. JPMorgan views its involvement in stablecoins as critical to defending its market share and relevance in global finance.

Citigroup Eyes Stablecoin for Tokenized Banking and Custody

Citigroup is evaluating the launch of a Citi-branded stablecoin to support its tokenized deposit infrastructure and enhance cross-border transactions. Bank executives confirmed their interest in digital tokens as a tool for improving efficiency and expanding custody services. The initiative reflects a broader industry trend toward integrating stablecoins within institutional-grade payment rails.

The bank sees tokenized deposits and stablecoins as central to its digital asset strategy moving forward. It believes these tools will enable faster, more secure settlements, especially in international payments where legacy systems lag. By focusing on these areas, Citigroup aims to serve both enterprise clients and future blockchain-native businesses.

Citigroup’s potential entrance into stablecoins aligns with evolving regulation and customer demand for better digital services. It joins JPMorgan and Bank of America in exploring ways to integrate blockchain technology without abandoning regulatory compliance. These efforts could also involve partnerships with other banks through existing platforms like Early Warning Services, which powers Zelle.

Traditional Banks Adapt to Maintain Payment Leadership

The increasing adoption of stablecoins across banking giants signals a reshaping of traditional payment systems. Unlike older systems like ACH or SWIFT, stablecoins promise real-time settlement at lower costs. This appeal has grown especially strong in emerging markets, where speed and access matter most.

Senate recently passed the GENIUS Act, while the House is preparing to vote on stablecoin-focused measures. Such momentum gives established banks the legal clarity needed to move faster in deploying stablecoins.

Bank of America has also hinted at joining the stablecoins space, though it remains less vocal than JPMorgan or Citigroup. A joint solution through Zelle’s parent company could unite major banks under one stablecoins platform. Still, as competition heats up, individual innovation may define who leads the next generation of payments.