Banking giants JPMorgan, Bank of America, Citigroup, and Wells Fargo are in talks to develop a unified stablecoin solution.
According to the Wall Street Journal on May 22, some of the largest financial institutions in the United States are exploring the possibility of joining forces to launch a stablecoin.
Subsidiaries of JPMorgan, Bank of America, Citigroup, and Wells Fargo have initiated preliminary discussions for a joint stablecoin issuance, according to sources close to the matter cited by the WSJ. Also at the negotiating table are Early Warning Services, the parent company of the digital payments network Zelle, and the payment network Clearing House.
The talks are reportedly still in the early stages, and any final decision could change depending on regulatory developments and market demand for stablecoins.
Stablecoin regulation
On May 20, the US Senate voted 66 to 32 to advance discussion of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), a specific law to regulate stablecoins. The bill outlines a regulatory framework for stablecoin collateralization and mandates compliance with anti-money laundering rules.
David Sacks, White House crypto advisor, expressed optimism about the bill’s bipartisan approval. However, senior Democratic Party officials intend to amend the bill to include a clause preventing former President Donald Trump and other US officials from profiting from stablecoins.
Demand for stablecoins has increased, with total market capitalization rising to $245 billion from $205 billion at the beginning of the year, a 20% increase.
