Some of the largest banking institutions in the United States are reportedly in early discussions to jointly develop and issue a stablecoin, according to a May 22 report from The Wall Street Journal, citing sources familiar with the matter.
Entities affiliated with JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are said to be involved in the talks, which remain in preliminary stages. Other players reportedly participating in the discussions include Early Warning Services, the parent company of digital payments platform Zelle and The Clearing House, a major U.S. payment network.
While no firm decision has been made, the project’s future is expected to hinge on the evolving regulatory environment and the growing institutional interest in digital dollar alternatives.
Spokespersons for JPMorgan declined to comment, and other banks involved—Bank of America, Citigroup, and Wells Fargo—did not immediately respond to media inquiries.
The reported talks come just as U.S. lawmakers are advancing new legislation to regulate stablecoins. On May 20, the U.S. Senate voted 66–32 to move forward with deliberations on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The proposed legislation sets out requirements for how stablecoins must be backed and mandates compliance with anti-money laundering (AML) standards.
White House crypto policy lead David Sacks has expressed confidence that the bill will ultimately pass with bipartisan support. However, the bill has become politically charged, with some high-ranking Democrats proposing amendments that would prevent Donald Trump and other U.S. officials from financially benefiting from stablecoin projects.
Critics have voiced concern over Trump’s involvement in the sector following the launch of the USD1 stablecoin by his crypto platform World Liberty Financial in March. They argue that favorable regulation could lead to personal financial gain for the former president and his associates.
Interest in stablecoins continues to accelerate globally, with a growing number of institutions exploring integration. Since the beginning of the year, the total stablecoin market capitalization has surged from $205 billion to $245 billion, marking a 20% increase. Yield-bearing stablecoins are also carving out a notable share, now accounting for approximately 4.5% of the market, with a combined circulating supply of $11 billion.