Major US Banks Explore Joint Digital Dollar Stablecoin
Major US banks, including JP Morgan Chase and Bank of America, are exploring the possibility of creating a joint digital dollar stablecoin. This marks a significant shift in the intersection of traditional finance and cryptocurrency.
The discussions are in their early stages, involving a consortium of major US banks such as Citigroup and Wells Fargo. The banks are considering using entities they co-own, like Early Warning Services and The Clearing House, for this project. While there are no specific talks about a digital dollar stablecoin, several banks like DekaBank, ING, and UniCredit are already working on a Euro-stablecoin.
The banks' motivation is twofold: to defend against stablecoins potentially siphoning deposits and disrupting their dominance in transactions, and to streamline and accelerate routine transactions, particularly cross-border payments. President Donald Trump's pro-crypto stance and his family's involvement in stablecoins may also be encouraging this exploration. The US Senate's recent advancement of the GENIUS Act, a bill creating a regulatory framework for stablecoin issuance, could also be influencing the banks' decision.
The potential alliance amongst rival banks to create a shared digital asset signals a significant shift in the banking landscape. The discussions are dependent on factors like regulatory clarity and market demand. If successful, a bank-backed stablecoin could significantly impact the way routine transactions are handled, particularly across borders.
