Banks Reconsider Stablecoin Plans Amid Circle Internet Group Slide

Circle Internet Group shares dropped by 4% on Wednesday following a report from The Wall Street Journal that banks are reconsidering their stance on stablecoins. Despite earlier reservations, major financial institutions are now warming up to the idea of launching their own stablecoins.

The report indicates that banks, including some of the largest ones in the US, have started evaluating whether they could launch their own stablecoins. JPMorgan Chase has a tokenized deposit called JPM Coin and its own blockchain, but a spokesperson said the bank has no plans to issue a stablecoin unless there is customer demand for it.

A group of over a dozen financial institutions, including Visa, BlackRock, Google, and DoorDash, are reportedly moving forward with a global stablecoin venture. Some bank executives had previously dismissed the need for stablecoins, but now they're considering whether their own tokens could encroach on traditional banking business.