Large U.S.-based financial giants are reportedly in early talks to launch a joint stablecoin. According to sources familiar with the matter, firms linked with JP Morgan, Wells Fargo, Bank of America, and Citigroup have discussed launching a dollar-backed asset.
These stablecoin discussions, while still in early stages, are believed to involve key payment networks, including The Clearing House and Early Warning Services. While the firms have not made any official statements, the talks signal growing interest among traditional banks to remain competitive in the evolving digital payments space.
— Radar 𝘸 Archie
(@RadarHits) May 23, 2025
Stablecoin Demand Pressures Traditional Banking
The rising demand for stablecoins is pushing banks to act. So far in 2025, the stablecoin market cap has grown by over 20%, climbing from $205 billion in January to more than $245 billion. Yield-bearing stablecoins, offering returns while maintaining price stability, have also gained traction. These types of stables now account for up to 4.5% of the market.
#1 — It is expensive to send ACH and Wire payments
Banks will save money by conducting payments on blockchains.
It is cheaper and faster to make a transaction even on a slower network like Ethereum, let alone faster ones like Solana, XRP and rollups.
This saves banks money.
— Austin King (@OnchainAustin) April 2, 2025
Experts say this shift reflects growing institutional and global interest. Several governments are exploring state-backed stablecoins, and private firms are increasingly integrating them into platforms. Recently, Meta reportedly resumed efforts to support stablecoin transactions across its social apps. Some believe that US banks may be reacting to the threat of stablecoins displacing parts of their business model.
#2 — Stablecoins offer a far better UX on the payment front.
Few people today use ACH and Wire because of how expensive they are, instead most people use something like Venmo or CashApp.
This is parasitic to bank deposits, taking away their business. Stablecoins fix this.
— Austin King (@OnchainAustin) April 2, 2025
Regulation Could Shape Outcome
The outcome of the stablecoin collaboration may depend on Washington. The GENIUS Act, a proposed bill for regulating stablecoin issuance and anti-money laundering compliance, is currently advancing in the US Senate. While the bill has bipartisan backing, amendments are expected. Some expect changes to clauses that may restrict potential conflicts of interest involving public officials, including President Donald Trump. Regardless, key figures like David Sacks expect the bill to pass soon.
Stablecoin legislation is about to pass the Senate, and Bitcoin just hit a new all time high.
— David Sacks (@davidsacks47) May 21, 2025
With regulatory clarity pending and market demand climbing, the entry of major US banks into the stablecoin space could signal a major turning point in the intersection of traditional finance and crypto.
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