Some of the largest US banks are reportedly in discussions to jointly develop stability amid growing influence in the cryptocurrency sector.
Major US banks explore joint stubcoin ventures to compete with crypto rivals
The initiative is still in the exploration stage and includes payment companies co-owned by bank giants such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo.
Key players in the talk include early warning services, the operator behind the popular peer-to-peer payment platform Zelle, and clearinghouse, which operates a real-time payment system widely used in the US financial system.
The proposed Stablecoin is pinned to US dollars and is used to promote faster and more efficient transactions across the banking network. The aim is to promote digital payments and provide a regulated alternative to proprietary crypto stub coins such as tethers (USDT) and circle USDCs.
This potential collaboration between major banks reflects the strategic changes in traditional finance as institutions seek to regain lost positions in payment systems and decentralized financial (DEFI) innovations from cryptographic origins.
Bank-issued Stablecoin also helps reduce reliance on third-party platforms and increase interoperability between financial institutions.
The initiative highlights the growing awareness among traditional funds of the need to adapt to the changing digital asset ecosystem as consumer demand for faster, borderless and cheaper transactions increases.
No formal decisions have been made and regulatory hurdles remain important, but the discussion underscores the willingness of legacy agencies to adopt blockchain-based solutions.
*This is not investment advice.
