Major US Banks Explore Venturing into Crypto with Joint Stablecoin

Some of the United States’ largest banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are exploring the creation of a joint stablecoin.

This initiative signifies a substantial move by established financial institutions into cryptocurrency, potentially reshaping the digital currency landscape and its integration with traditional finance.

Notably, on May 20, 2025, the U.S. Senate passed the GENIUS Act of 2025, signaling progress in regulating digital assets. The 66-32 vote demonstrates bipartisan interest in establishing rules for stablecoins, a move poised to reshape the U.S. cryptocurrency market.

Interestingly, despite notable disagreement, the GENIUS Act gained bipartisan support. Amendments addressing ethical concerns and potential conflicts of interest swayed some Democratic senators to vote in favor of the bill, highlighting their willingness to compromise.

US Banks Exploring Joint Stablecoin

The reported collaboration aims to develop a digital currency for participating banks, facilitating more efficient payment processing and easing cross-border transactions. This initiative partly addresses the increasing popularity of private-sector stablecoins like Circle’s USDC. While these have achieved considerable user adoption, they have also drawn increased regulatory attention.

Furthermore, these banks plan to create a reliable and steady digital currency option by sharing resources and skills. This option will use the trust people already have in banks.

This change shows these big banks are getting involved. Instead of just watching cryptocurrencies grow, they want to use blockchain in their current systems.

This move by major banks will significantly affect crypto and traditional banking. It could change how people use digital money in their daily finances. By working together and using their knowledge of rules, these banks plan to create a stablecoin that works well and follows the rules, which could lead to more people using it.

For the crypto world, this could mean more common use of cryptocurrencies. However, it also raises the possibility of more central control over something that was intended to be free from central control. Regulators will probably like these efforts because they promise more clarity and supervision.

According to the Wall Street Journal report, this collaboration could create good competition, leading to quicker, safer, and more open stablecoin transactions. On the other hand, smaller crypto companies might find it harder to compete with the powerful groups formed by these big banks.