JPMorgan Chase Eyes Public Stablecoin Amid Banking Industry Shift

JPMorgan Chase is exploring the possibility of launching a public stablecoin separate from its existing JPM Coin deposit token. The bank's Kinexys platform, which processes more than $7 billion in daily tokenized deposit volume, already has the infrastructure for a stablecoin. However, issuing a stablecoin would mean creating a product that cannibalizes the bank's own deposit base unless the strategic value of controlling digital dollar rails outweighs the cost.

The move comes as 39 state banking associations have formed the BankChain Alliance to build a shared permissioned blockchain targeting a 2027 launch. The GENIUS Act, signed into law in July 2025, created the first federal framework for payment stablecoins and gave banks regulatory clarity they needed to enter the market.

Tether dominates the stablecoin market with 59% of market capitalization, followed by Circle's USDC, which carries roughly 70% of adjusted transaction volume. The stablecoin market has reached approximately $316 billion in size, with a projected growth of over $25 trillion in transactions in 2026.