Banks Weigh Stablecoins as Payments Competition Heats Up

Major U.S. and international banks are reconsidering stablecoins as competition from crypto companies and technology groups expands into payments, according to a recent Wall Street Journal report.

The move is preliminary, but several global banks, including Bank of America, Wells Fargo, and Santander, are reportedly advancing a shared stablecoin venture that would initially focus on a U.S. dollar token before potentially adding euros and other Group of Seven currencies.

JPMorgan, which has been evaluating the option internally, said it has no current plans to issue a stablecoin despite its CEO Jamie Dimon's previous statements about becoming more involved with stablecoins to understand their role and compete with financial-technology companies.

The bank currently operates JPM Coin through its Kinexys blockchain platform, which is a deposit token representing a customer’s claim against JPMorgan rather than an independently issued payment stablecoin backed by a separate reserve portfolio.

Additionally, 39 state banking associations have formed the BankChain Alliance to develop shared blockchain infrastructure targeting a 2027 launch. The alliance's planned network could support stablecoins, tokenized deposits, smart payments, and automated settlement.