JPMorgan Chase and Bank of America (BoA) are considering joint issuance of stablecoins

Large U.S. banks such as JPMorgan Chase and Bank of America (BoA) are considering joint issuance of stablecoins. It seems that U.S. President Donald Trump intends to preempt the market amid his move to foster digital assets such as cryptocurrency.

U.S. President Donald Trump is preparing to intervene in the market for digital assets such as cryptocurrency. In the midst of this, it has been observed that large U.S. banks are discussing joint issuance of stablecoins.

The Wall Street Journal (WSJ) reported on the 22nd (local time) that major Wall Street banks, including Citigroup and Wells Fargo, are discussing forming a consortium to issue stablecoins together. Early warning service, an operator of Zelle, a P2P (one-to-one direct transaction) platform that allows immediate remittance between individuals, and clearing house, a real-time payment network, are also participating in the discussion.

Stablecoins are virtual currencies that fix values on specific assets to minimize price volatility. It is mainly designed so that the exchange value is fixed in the U.S. dollar or euro. In addition, U.S. government bonds are usually used as collateral to support values.

"This discussion by large banks is a sign that mainstream finance and virtual currency finance are getting closer," WSJ analyzed.

However, this discussion on the introduction of stablecoins by large banks is still in its infancy, and the final decision may vary depending on the legislative direction related to stablecoins.

The "Genius Bill," a stablecoin bill that is set to be formally voted on by the plenary session this week, contains restrictions on the issuance of stablecoins by non-financial listed companies. If technology companies and others are prohibited from issuing their own stablecoins and an environment is established in which banks can manage them within the system, they can actively jump in.

Trump Jr. and Eric, President Trump's two sons, launched the virtual currency platform "World Liberty Financial" (WLF) in September last year and sold meme coins of President Trump and his wife. In March, it also released a stablecoin named 'USD1'.