A group of America’s largest financial institutions is reportedly in early discussions to develop a unified, bank-backed stablecoin—signaling a shift in how traditional banks may adapt to blockchain infrastructure. According to The Wall Street Journal, the initiative involves JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major players.
Key parties include The Clearing House, which runs real-time payment rails, and Early Warning Services, the fintech firm behind Zelle. Their aim is to create a dollar-pegged stablecoin that supports faster payments and strengthens the banking sector’s relevance in an increasingly digital economy.
Sources close to the talks note that while interest is strong, the discussions are still preliminary. Much will hinge on federal legislation, particularly the outcome of the GENIUS Act, currently under Senate review.
The proposed bank-issued token could offer a compliant alternative to private stablecoins like USDT and USDC, while also presenting a market-driven response to potential central bank digital currency (CBDC) initiatives.
GENIUS Act Gains Ground in U.S. Senate
As bank-led stablecoin plans take shape, lawmakers in Washington are making progress on the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act)—a landmark effort to regulate stablecoin issuance in the U.S.
Passed in a bipartisan procedural vote, the bill outlines core requirements for issuers, including:
- 1:1 dollar reserves or equivalent liquid assets
- Annual audits for large-scale stablecoin operators
- Controls on foreign-issued tokens used domestically
The legislation is now undergoing amendment reviews before a final Senate vote. If passed, it would be the most comprehensive federal framework to date for U.S.-based stablecoins.
Trump’s Crypto Links Raise Ethical Concerns
Despite legislative progress, debate continues around President Donald Trump’s ties to the crypto sector. Critics have flagged his family’s involvement with World Liberty Financial, the issuer of USD1—a dollar-pegged stablecoin launched shortly after Trump publicly endorsed tokenized U.S. dollars.
Lawmakers have raised conflict-of-interest concerns, especially as the GENIUS Act would shape the very regulatory environment that could benefit USD1 and similar projects. Calls for stricter ethics disclosures have emerged, though Trump allies maintain the legislation is broadly pro-innovation and not tailored to individual firms.
Quick Facts
- Major U.S. banks are in early talks to develop a joint stablecoin pegged to the U.S. dollar.
- The initiative involves entities like Early Warning Services and The Clearing House.
- The GENIUS Act, currently in the Senate, will play a crucial role in shaping the project’s future.
- The move signifies a strategic effort by traditional banks to innovate and remain competitive in the digital age.
