JPMorgan, Bank of America, Citigroup and Wells Fargo Explore the joint Stablecoin project to challenge digital active platforms: WSJ

Share this article

The biggest American banks assess a Stablecoin collaborative initiative to compete with digital asset platforms which quickly gain by a market share, the Wall Street Journal reported on Thursday.

Now in early exploration, the effort brings together co -owners’ entities by Jpmorgan Chase, Bank of America, Citigroup, Wells Fargo and other leading American banks, sources of the matter issue.

These entities are early alert services (EWS), which operates the PA or Zelle payment network, and the Clearing House (TCH), which manages real -time payments between banks.

EWS jointly belongs to seven major American banks, including Jpmorgan Chase, Bank of America and Wells Fargo. TCH, on the other hand, belongs to two dozen of the largest banks in the world, including these three.

The future of the Stablecoin joint project is based on regulatory clarity and market appetite. Currently, the most remarkable legislative effort in this space is the engineering law, which aims to establish a framework for the issue of stabbing by banks and non -.

The law, abbreviation of the law on national innovation law for stablescoins, has just been adopted a critical procedural vote this week and is currently in the modification of the Senate. A full vote for the proposed legislation should arrive in the coming weeks.

Accepted in a vote of 69-31.

Now let’s move on to the modification process …

– Eleanor Terrett (@elean branch) May 21, 2025

If it is adopted, the Engineering Act will establish a legal framework to issue stabbed in the United States, encouraging Wall Street’s investment in the cryptography sector.

Early move

JPMorgan Chase, the largest American bank by assets, is best known for its JPM part, which, although using in the JPMorgan network, demonstrates the early and proactive adoption of the bank’s blockchain technology and digital assets to modernize traditional banking processes.

Wells Fargo has also developed and piloted a stablecoin linked to a dollar called Wells Fargo Digital Cash, designed for internal regulations and cross -border payments within the Bank’s global network.

Bank of America has not yet expressed stablecoin, but CEO Brian Moynihan publicly expressed the bank’s desire to do so.

Speaking at the Economic Club of Washington in February, Moynihan noted the bank’s capacity to create a fully supported stablecoin in dollars, adding that such a decision would ultimately depend on the regulation permit.

Cryptographic companies pursue banking charters

While the big American banks explore with caution the initiatives of Stablecoin, cryptocurrency companies such as Circle, Bitgo, Coinbase and Paxos pursue banking status, according to an April report of the Wall Street Journal.

After the collapse of the FTX and the failure of friendly institutions such as Silvergate and Signature Bank, traditional finances have grown up from the cryptographic sector. A regulatory examination has intensified and access to essential banking services has evaporated for many digital asset companies.

But with President Trump in power and undertakes to make the nation a “bitcoin superpower”, the political environment has changed and this change creates new opportunities for cryptographic companies seeking to consolidate their role in the American financial system.

Some companies are looking for large -scale charters, while others are pursuing licenses for limited use specially designed for the issue of Stablecoin. Bitgo, for example, approaching a charter request and also safeguarding the reserves for USD1, a Stablecoin project by World Liberty Financial, the Crypto company of the Trump family.

Anchorage Digital remains the only crypto company to have obtained a federal banking charter, which she obtained in 2021. CEO Nathan McCauley said that the process required tens of millions of dollars in compliance and had a regulatory examination.

Share this article