Banks Warm Up to Stablecoins Amid Crypto Competition

Major banks are reconsidering their stance on stablecoins after previously pushing back against them. The growing market has raised concerns that crypto companies and nonbank firms could encroach on traditional banking businesses.

A group of over a dozen financial institutions, including Bank of America and Wells Fargo, is planning to launch a global stablecoin venture focused initially on the US dollar.

JPMorgan Chase has also been exploring the possibility of issuing its own stablecoin, although it has not begun developing an active product. The bank currently operates JPM Coin, a tokenized deposit system using blockchain technology.