America's Biggest Banks Consider Teaming Up to Challenge $245B Stablecoin Market: WSJ
Major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are exploring a joint stablecoin venture to compete with the crypto industry's influence in digital payments. Discussions are focused on upcoming stablecoin legislation that could establish frameworks for issuing stablecoins. Stablecoins, often pegged to the U.S. dollar, are gaining traction, with some concerns about their potential destabilizing effects on economic policy. The Senate is advancing the GENIUS Act, which aims to regulate payment stablecoins and could enhance digital asset adoption. Banks view the regulatory changes as an opportunity to challenge the dominance of Circle and Tether in the $245 billion stablecoin market. Tether holds over 60% market share despite scrutiny over its reserves, while Circle's USDC has faced challenges, including a temporary depegging and declining market share. The banks' discussions are still in early stages and may evolve.
