The country’s largest commercial banks are in early talks to create a jointly issued stablecoin, an effort aimed at defending their dominance in the payments ecosystem as cryptocurrency adoption and regulatory support grow under the Trump administration, The Wall Street Journal has reported.
The discussions involve major banking players including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and others through entities they co-own, such as Early Warning Services—the operator of peer-to-peer payments app Zelle—and the Clearing House, which runs a real-time payments network.
According to people familiar with the matter, WSJ said, these firms are considering whether to collaborate on a unified digital token that could be used across member institutions and potentially beyond.
The concept remains at an early stage and is subject to change.
People involved said a final decision would hinge on several factors, including whether there is enough consumer and business demand for a bank-issued stablecoin, and how new legislation shapes the regulatory framework.
GENIUS Act bill encouraging crypto firms to apply for banking charter
Stablecoins are digital currencies designed to maintain a one-to-one peg with a national currency like the US dollar.
They are backed by reserves such as cash or US Treasurys and are primarily used in the cryptocurrency sector to facilitate trades or store value.
However, banks increasingly see them as a promising tool for speeding up traditional financial processes like cross-border payments, which can take days using current infrastructure.
The potential move by the banks comes amid growing signs that the Trump administration is poised to accelerate support for stablecoins.
Last month, The Wall Street Journal reported that several crypto-native firms are preparing to apply for banking charters, encouraged by momentum behind a bill called the GENIUS Act.
The bill aims to establish a federal framework for stablecoin issuance, allowing both banks and qualified nonbanks to participate.
On Thursday, the Senate advanced the bill past a procedural hurdle.
A recent memo from law firm Paul Hastings noted that the latest draft includes limitations on stablecoin issuance by nonfinancial public companies—an attempt to appease bank lobbyists—but stops short of a complete ban.
Big banks seek digital edge before tech giants move in
Banking leaders fear that if they do not move quickly, deposits and payment activity could be diverted to crypto-native firms or tech giants entering the space.
Trump-aligned entities, such as the Trump family’s World Liberty Financial, recently launched their own stablecoin, signaling an expansion of private digital currency initiatives.
Against that backdrop, banks see a potential opening to reassert their dominance.
A bank-backed stablecoin could offer a faster, more secure alternative for domestic and cross-border payments.
Some sources said the model under discussion might allow non-owner banks to use the stablecoin, potentially broadening adoption.
However, a separate effort by smaller banks to create their own stablecoin has reportedly faced steep operational and strategic hurdles.
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