Catenaa, Tuesday, May 23, 2025-America’s top banks are in preliminary discussions to form a consortium that would launch a US dollar-backed stablecoin, according to a Wall Street Journal report published Thursday (Yesterday).1
The venture would involve companies jointly owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and others.
Entities involved include The Clearing House, a real-time payments network, and Early Warning Services LLC, the fintech firm behind Zelle.
The plan remains in its early stages and hinges largely on the outcome of ongoing legislative efforts to regulate stablecoins in the US, the report said.
The banks are reportedly responding to growing momentum in Congress behind the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act.
The proposed legislation would require stablecoins to be fully backed by US dollars or similarly liquid assets and mandate annual audits for issuers managing more than $50 billion in tokens.
Lawmakers have advanced the bill, but a final vote remains pending as negotiations over amendments continue. Political dynamics around the bill have been complicated by President Donald Trump’s vocal support for stablecoins and his association with World Liberty Financial, a crypto firm that launched its own USD1 token.
While the GENIUS Act has bipartisan support, some Democrats are pushing for a deeper examination of the former president’s crypto ties before signing off.
If approved, the bill could mark a turning point for US banks’ entrance into the digital asset market and potentially reshape the landscape for regulated stablecoin issuance in the United States.
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