JPMorgan weighs stablecoin launch as Wells Fargo and banks advance joint venture
The biggest US banks are advancing a joint stablecoin as they look to counter the growing influence of crypto companies in payments.
JPMorgan recently held preliminary discussions about launching its own stablecoin, The Wall Street Journal reported Wednesday, citing people familiar with the matter.
JPMorgan has no active stablecoin product in development, and a spokeswoman told the Journal that the bank has no current plans to issue one but would evaluate its options based on customer demand and regulatory developments.
The largest US bank already has JPM Coin, a blockchain-based tokenized bank deposit designed for institutional clients, and operates its own blockchain. The stablecoin-like token represents US dollars held within the bank and allows approved counterparties to transfer, settle and reconcile funds on-chain.
Meanwhile, a group of more than a dozen financial institutions including Wells Fargo, Bank of America and Santander has been developing a stablecoin venture that could operate globally.
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The banks are considering a token initially backed by dollars, with plans to expand to euros and potentially other G7 currencies. The stablecoin would focus on commercial applications, with use cases varying by market.
The development follows a WSJ report last May that major US banks explored a collaborative stablecoin project to compete with crypto platforms that are increasingly gaining ground in payments. The discussions involved entities jointly owned by JPMorgan, Bank of America, Citigroup, Wells Fargo and other leading lenders.