Top American banking giants are quietly preparing to enter the stablecoin market, marking a new shift in the relationship between traditional finance and cryptocurrency. According to a recent report by The Wall Street Journal, several prominent banks in the United States are now in early talks to jointly develop and launch a stablecoin.
JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are among the banks involved. Zelle and the real-time payment system Clearing House are also involved in the discussions. As the initiative is in its first stage, key points are still not confirmed.
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These discussions come when crypto regulation in the U.S. is gaining momentum. A recent development in Congress has boosted the prospects of a stablecoin regulatory law that would be good for such projects. With President Donald Trump maintaining a pro-crypto stance, the environment is now more favorable for traditional institutions to enter the digital asset space.
Major banks have entered the business, apparently in reaction to the rise of stablecoins like USDT and USDC, which are currently valued in the hundreds of billions. The USDT stablecoin has about $152 billion in circulation. This move signals that banks want to strengthen their position by creating a digital asset consistent with rules and existing finance systems.
Hoskinson’s Timely Reaction Sparks Discussion
Cardano founder Charles Hoskinson responded to the news with a concise post on X, formerly known as Twitter. According to his statement, he wrote, “As predicted,” indicating that he foresaw such a move from the traditional finance sector.
His comment drew immediate attention from the crypto community. There were suggestions that USDT and USDC might face intense competition if the market gets a new stablecoin underneath a regulated bank. There were responses of encouragement and some worries about how the balance among digital currencies might be affected.
Ripple made its first move into stablecoins with the RLUSD token, which it launched at the end of 2024. It is also said that Meta is considering stablecoin payments after LIBRA, its virtual currency project, did not take off.
As new stablecoins issued by banks appear on the horizon, Hoskinson’s response points to growing ties between classic finance and blockchain. As a result of these developments, stablecoins may face new competition, and digital assets could have a greater role in traditional banking.
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