Major US Banks Are Teaming Up to Launch a Regulated Stablecoin

With the GENIUS Act gaining majority support in the Senate, some of America's largest banks are preparing to dive headfirst into blockchain.

Major US banks are joining forces to create a regulated stablecoin, aiming to challenge the existing crypto leaders like Tether.

The news: As the GENIUS Act gains majority support in the Senate, some of America's largest banks are preparing to dive headfirst into blockchain. According to the Wall Street Journal, JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup are in early talks to launch a joint stablecoin.

With a pro-crypto administration in the White House and the GENIUS Act paving the way, the timing couldn't be better. This move could disrupt the $243 billion stablecoin market, currently dominated by Tether's USDT with a $152 billion market share.

What else is new: The project also involves major payment players like Zelle and the Clearing House's real-time payment network. As discussions are still in the early stages, the goal is to develop a fully regulated, bank-backed stablecoin that would be integrated with the existing financial system.

This contrasts sharply with the smaller, decentralized stablecoins like USDC, which are also seeking to gain approval from regulators.

Trust and liquidity: One X user highlighted how a stablecoin backed by major US banks would instantly win on trust and liquidity, pushing out smaller players in the decentralized finance space.

While this would bring stability and mainstream appeal, it also risks centralizing a space originally built to be open and decentralized.

If top-tier US banks drop a joint stablecoin, expect a seismic shift—instant trust, deep liquidity, and integration with legacy rails could make it the default pick for institutions, but also threaten to freeze out smaller players and open protocols.Could this accelerate

Hoskinson says, "I told you so": Notably, Cardano founder Charles Hoskinson, known for his optimistic outlooks, reacted with "as predicted" on X.

Hoskinson has previously stated that institutions would eventually adopt blockchain, and this latest move only strengthens his case. His post sparked reactions from crypto enthusiasts, especially as reports of Meta exploring stablecoins for payments also emerged.

The bigger picture: The timing of this development is crucial. The recently advanced GENIUS Act offers a clear regulatory framework for stablecoins, setting the stage perfectly for traditional finance to enter the crypto domain.

Moreover, President Trump's administration has shown support for cryptocurrencies, further accelerating adoption.

The US banks are hoping to combine the trust they've built over decades with the speed and transparency of blockchain, aiming to create a hybrid financial technology that could quickly attract a large user base.