The largest American banks are considering association to issue stableCoin – digital money that would serve in response to growing competition from the cryptoindustry, writes the Wall Street Journal (WSJ).
According to addressed sources, companies participated in the negotiations that partially own JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other great commercial banks. Among them are Early Warning Services, the ZELLE payment platform operator, as well as the Clearing House, network for real-time payments.
These bank discussions are still in the initial, conceptual phase and plans can change. The final decision will depend on the legislative events related to Stablecoine, as well as from the demand assessment for such a product.
Banks are increasingly worried that Stablecoins could receive mass acceptance under Donald Trump, and that they can take a significant part of deposits and transactions that now process, especially the game included large technological companies or retail chains. The banking sector is currently trying to compensate missed in the crypto space, after a 2023 regulatory shock, the investor is transmitted.
Stablecoins function as digital dollars in crypto markets – are used to keep cache or buy other tokens. As a rule, they are related to the US Dollar in a ratio of 1: 1 and supported cache reserves or cache, such as US bonds.
Banks believe that Stablecoins could speed up everyday transactions, such as international payments that currently last for several days. However, there is still a skeptician regarding the certainty of these digital funds and the legal consequences of their introduction, the sources state.
The possibility of traditional forces with Wall Street team to launch its own stableCoin is the latest sign of the traditional and crypto finance approach. Given the efficiency of stableCoin in the transfer of money, this market has long been considered a logical convergence point between those two worlds.
Last month, the WSJ announced that more crypto companies planned to apply for banking licenses, encouraged by a draft law that envisages the regulatory framework for publecoin and by banks and non-banking institutions.
The Senate approved the procedural step for the law called Genius Act this week. The latest version of the law introduces restrictions on the issuance of stableCoin by public companies that are not financial, but they do not prohibit them completely, which bank lobbyists desired, is stated in the letter of law firm Paul Hastings.
In March, the company of the World Liberty Financial, owned by the Trump family, announced the launch of Stablecoin. Donald Trump also launched Meme Cain, and organized a gala dinner for his largest owners.
One of the banking consortium models includes stableCoin, which would be available to other banks, not only to the CLEARING HOUSE and EARLY WARNING SERVICES co-founges, the sources are listed.
Some regional and local bankers are also considering the formation of their own consortium for StableCoin, although this would be significantly more challenging for smaller financial institutions.
