Banks Eye Stablecoins as Payments Competition Heats Up

Major U.S. and international banks are reconsidering stablecoins as crypto companies expand into payments, according to an Aug. 26 Wall Street Journal report.

JPMorgan told the publication that it has no current plan to issue a stablecoin, but could review its options as customer demand and regulations evolve. Chief Executive Jamie Dimon previously said the bank would become more involved with stablecoins to understand their role and compete with financial-technology companies.

The bank already operates JPM Coin through its Kinexys blockchain platform, which is a deposit token representing a customer's claim against JPMorgan.

Global banks are reportedly advancing a global stablecoin venture, initially focusing on a U.S. dollar token before potentially adding euros and other Group of Seven currencies.