Major United States banks are diving into the crypto world, exploring stablecoins as digital payments gain traction. Bank of America, Citigroup, JPMorgan, and Morgan Stanley are all eyeing these digital assets. Stablecoins, pegged to the U.S. dollar, promise stability for transactions. A shifting regulatory landscape is fueling this interest.
Stablecoin Plans Heating Up
The Bank of America (BoA) is exploring the creation of a stablecoin, but there is no timeline for its launch, according to CEO Brian Moynihan. The bank is reviewing the interest rates clients are currently earning, which are low, and exploring ways to utilize them more effectively. The BoA CEO stressed the importance of forming partnerships to successfully implement the project.
Citigroup, JPMorgan, and Morgan Stanley are gaining interest in stablecoins, showing a shift in the industry. Citigroup’s CEO, Jane Fraser, sees a “good opportunity” to create a stablecoin for digital payments. JPMorgan’s Jamie Dimon, who was once skeptical about cryptocurrency, confirmed the bank’s involvement but did not share specific details.
Morgan Stanley’s CFO, Sharon Yeshaya, is closely watching developments in stablecoins for client use. These banks aim to update payment systems and compete with cryptocurrency platforms like Tether.
The U.S. Regulatory Atmosphere
The U.S. regulatory environment is becoming more favorable to cryptocurrency, which is boosting banks’ confidence in stablecoin projects. The GENIUS Act is moving through Congress and aims to create a clear framework for issuing stablecoins. This bill could soon reach President Trump, providing the legal clarity that banks want.
However, uncertainties still exist, as Moynihan noted, which slows progress until regulations become clear. A positive change in regulations could speed up the adoption of stablecoins in the financial sector.
Other banks are also exploring joint stablecoin projects, potentially using platforms like Early Warning Services, which runs Zelle. This collaboration involves seven major U.S. banks, including PNC Bank, Truist, and U.S. Bank, and aims to compete with cryptocurrency firms.
This initiative marks a shift toward incorporating digital assets into traditional finance. Last year, stablecoins processed over $33 trillion in transactions, surpassing the volume of transactions processed by Visa and Mastercard. This large volume demonstrates why banks are eager to join the crypto economy.
