Big U.S Banks Eye Collaboration on a Joint Stablecoin Initiative
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Four major banks are in talks to launch a shared dollar-pegged stablecoin, aiming to dominate money flow as crypto gains traction.
According to a May 22 Wall Street Journal report, JPMorgan, Bank of America, Citigroup, and Wells Fargo are teaming up with Zelle’s operator, Early Warning Services, and The Clearing House to leverage evolving crypto infrastructure.
The proposed token would be backed by cash and Treasury reserves, and its launch hinges entirely on regulatory approval.
https://twitter.com/PiQSuite/status/1925734279910133958
Could Stablecoins Be the Seam that Sews Wall Street and Crypto Together?
Banks are on high alert as stablecoin capitalization surges toward $245 billion, showing a near 20% growth since January. Yield-bearing coins now make up 4.5% of the supply.
New York University Professor Austin Campbell had warned that these digital dollars could siphon off the core deposits that fuel traditional credit and cause panic.
Leaving these institutional lenders racing to stake their claim before those deposits slip right through their fingers.
The news of talks comes just two days after the U.S. Senate voted 66-32 to bring the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act to the floor.
White House crypto adviser David Sacks predicts the bill will pass with bipartisan backing. However, senior Democrats plan to tweak it, ensuring sitting officials, including President Donald Trump, don’t see personal gain through stablecoins.
Nevertheless, Executives stress that any rollout will wait until the rules settle with current draft plans meant for custody design, off-chain settlement, and governance that keeps the peg intact.
Approval of the GENIUS Act could hand the consortium a compliant playbook and head-start over private issuers such as Tether and Circle. Success would anchor a bank-grade token inside U.S. finance, tightening the gap between Wall Street and crypto while Congress decides how digital dollars should work.
Can Congress Really Tame Crypto’s Wild Horse?
Some critics say the GENIUS Act still allows offshore players like Tether to gain an advantage over local stablecoin suppliers.
Despite broad support, the bill stops short of reigning in foreign issuers who command global liquidity.
Vugar Usi Zade, Bitget’s COO, warns that US-based issuers will shoulder steeper costs, pushing smaller outfits to merge or exit and leaving heavyweights to thrive.
Still, he admits the bill might boost regulated options, depending on the final language and enforcement. If they close that offshore gap, lawmakers could spark a more orderly market.
This hasn’t stopped companies from exploring stablecoin as a payment method.
Meta gears up to shake up payments by weaving stablecoin options into Facebook and Instagram.
https://twitter.com/BecauseBitcoin/status/1920558449311559815
Talks with crypto firms promise faster, cheaper transfers and a multi-token strategy with USDT and USDC.
Investors and exchanges will now be watching Congress’s actions in the coming days even more closely.
