Major U.S. banks are considering a joint issuance of a stablecoin to compete with the cryptocurrency industry, according to a WSJ report.

## Is it a challenge to the coin industry?

On the 22nd, a report by the WSJ revealed that major U.S. banks are jointly considering the issuance of stablecoins to counter the intensifying competition from the cryptocurrency industry. Involved parties include JP Morgan Chase, Bank of America, Citigroup, and Wells Fargo, and discussions with the operator of the P2P payment system “Zelle” and the real-time payment network “Clearing House” are also included.

Discussions within the banking consortium are in the early stages, and the final decision will be influenced by factors such as the progress of stablecoin-related legislation and demand. The banking industry is reportedly preparing for the possibility that deposits and transactions could be taken away if stablecoins are widely adopted under President Trump, with major IT companies and retail businesses entering the market.

Stable coins function as digital dollars in the cryptocurrency market and are used for cash storage and purchasing other tokens. While banks are paying attention to them as an opportunity to accelerate everyday transactions such as cross-border remittances that take several days in traditional payment systems, security and regulatory concerns remain.

The Senate cleared procedural hurdles this week for the “GENIUS Act,” which establishes a regulatory framework for stablecoin issuance by banks and non-bank entities. The latest version of the bill includes restrictions on stablecoin issuance by non-financial public companies, but it did not reach the complete ban that bank lobbyists sought.