JPMorgan and BofA just made a move no one saw coming

Companies owned by U.S. banking giants such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are exploring joining forces to launch a joint stablecoin, The Wall Street Journal reported on May 23.

The talks are still at an early stage, as the banks are evaluating the changing regulatory norms and stablecoin demand before making a call.

A stablecoin is a type of cryptocurrency that attempts to maintain a stable value, unlike traditionally volatile cryptocurrencies such as Bitcoin.

It is pegged to a relatively stable asset such as a fiat currency like the U.S. dollar or a commodity like gold.

Payments firms linked to Early Warning Services, the owner of digital payments network Zelle, and the payment network Clearing House are also part of the discussion, the report said. A stablecoin model that is adaptable to banks beyond the select institutions that are holding the discussion is on the table.

As per DeFiLlama, the stablecoin market is worth $245 billion as of now, with USDT issuer Tether and USDC issuer Circle collectively occupying more than 85% of the share.

Even the President Donald Trump-backed crypto organization, the World Liberty Financial, has launched its stablecoin USD1. The stablecoin accounts for 0.87% of the total market share.

It was a landmark week for the stablecoin market as the Senate advanced the GENIUS Act that deals with stablecoin regulation with a 66-32 vote on May 19.

The legislation faced intense criticism from the Democrats, such as Senator Elizabeth Warren, who said it overlooks Trump’s “blatant crypto corruption” through his involvement with multiple crypto ventures, such the USD1 stablecoin.

JPMorgan and BofA just made a move no one saw coming first appeared on TheStreet on May 23, 2025

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