Leading banking institutions in the United States are reportedly exploring the potential of collaborating to launch their own stablecoin as part of a strategic move towards the digitalization of finance.
According to a report by The Wall Street Journal, the companies owned by JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are in talks to jointly issue a stablecoin.
The discussions are said to involve several parties with direct knowledge of the matter.
Other financial institutions also linked to the stablecoin initiative include Early Warning Services, the parent company behind digital payment network Zelle, and payment network The Clearing House.
The effort is seen as a move to strengthen the presence of traditional banking in the rapidly growing digital currency ecosystem, potentially challenging the dominance of existing stablecoins such as USDT and USDC.
On May 20, the United States Senate voted 66-32 to continue discussions on the Guiding and Establishing US National Innovation (GENIUS) Act, which aims to regulate the use of stablecoins in the country.
The bill details a regulatory framework for collateral-based stablecoins, including strict requirements for compliance with Anti-Money Laundering (AML) laws.
The bill now moves on to the next stage for formal debate on the Senate floor, marking a significant development in the US government’s efforts to establish a clear legal framework for digital assets and blockchain-based payment systems. – Cointelegraph
