US Banks Unite Against Stablecoins with Blockchain Network

The largest banks in the US are working together to create a blockchain network aimed at countering the rise of stablecoins. A consortium of 25 banks, led by JPMorgan, Bank of America, Citigroup, and Wells Fargo, is building a shared tokenized deposit network through The Clearing House.

The goal is to keep $6.6 trillion in deposits from migrating to the $313 billion stablecoin market. JPMorgan has already deployed its deposit token on a public blockchain, while Wells Fargo plans to launch programmable cross-border payments this fall.

Meanwhile, Coinbase offers 3.5% interest on USDC through a 'loyalty reward' structure that avoids the GENIUS Act's ban on stablecoin interest, forcing banks to compete on yield.