Major US banks want to issue a joint stablecoin

Major US banks including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are in talks to launch a joint dollar-pegged stablecoin, The Wall Street Journal reported, citing people familiar with the process.

The project is in the early stages of development. The stablecoin will be backed by dollar assets stored in bank reserves. It is expected to be usable not only within the banking system, but also by third parties, including corporations and digital asset platforms.

The WSJ notes that Wall Street views stablecoins as a tool for maintaining control over the flow of money, especially against the backdrop of the growing popularity of decentralized financial solutions (DeFi), blockchain platforms such as Ethereum, Solana, and Avalanche, and government support for the crypto industry from the Donald Trump administration.

“Bankers are seeing their clients moving to digital solutions. The issuance of a stakecoin is an attempt to restore trust through technology, rather than resist it,” one of the publication’s sources said.

Earlier, digital payment solutions provider StraitsX announced the launch of the XSGD stablecoin, pegged to the Singapore dollar (SGD), on the decentralized XRP Ledger network.