US Banks Reconsider Stablecoins Amid Fintech Competition
Major banks in the US are rethinking their approach to stablecoins as competition from fintech companies and crypto firms heats up. According to a report by the Wall Street Journal, JPMorgan has considered launching its own stablecoin but does not have one at present.
A spokeswoman for the bank stated that they would evaluate if they needed to reconsider their options as demand and regulations evolve. The bank already operates JPM Coin, which is a tokenized deposit giving a claim on JPMorgan, rather than a stablecoin with a reserve portfolio.
More than a dozen banks are reported to be considering joining the consortium, including Bank of America, Wells Fargo, and Santander. The platform may be extended beyond the US dollar-pegged token to the euro or other G7 currencies post-launch.