Several large US banks are reportedly discussing a plan to launch a joint stablecoin.

According to The Wall Street Journal, firms connected to JPMorgan, Bank of America, Citigroup, and Wells Fargo are involved in early-stage talks.

Several large U.S. banks are discussing a plan to launch a joint stablecoin, according to a report by The Wall Street Journal.

The report, which was also cited by blockchain news outlet Cointelegraph, said on Friday that the move aims to respond to rising competition from startups in the cryptocurrency sector.

Firms connected to JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) are involved in early-stage talks, sources told the publication. Other participants include Early Warning Services, the parent company of Zelle, and The Clearing House, a payments network.

The initiative is still in its initial phase, and progress may depend on regulatory developments and overall market demand for stablecoins.

The U.S. Senate is advancing new legislation on stablecoin regulation. On Saturday, the Senate voted 66-32 in favor of advancing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill, which is now set for debate on the Senate floor, sets out requirements for collateralization and includes anti-money laundering measures.

The White House crypto adviser David Sacks has said the bill is expected to receive bipartisan support. However, some Democratic lawmakers are pushing to add a provision that would prevent President Donald Trump and other U.S. officials from profiting from stablecoins. In March, Trump and his family launched a digital asset platform, World Liberty Financial, which introduced a stablecoin called USD1. Critics argue that the proposed regulation could benefit the former president.

Stablecoin demand has increased sharply this year. Market capitalization rose from $205 billion to $245 billion. Yield-bearing stablecoins now account for about 4.5% of the total, with a circulating supply of $11 billion.

Some analysts say this growth is raising concerns within the traditional banking sector. NYU professor Austin Campbell noted that banks may view stablecoins as a threat to their existing business models. Separately, Meta (NASDAQ:META) is exploring stablecoin-based payments for its platforms.