(Reuters) -Some of the biggest U.S. banks are exploring whether to team up to issue a joint stablecoin, The Wall Street Journal reported on Thursday. The conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks, the report said, citing people familiar with the […]
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Some US banks explore venturing into crypto with joint stablecoin, WSJ reports
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(Reuters) -Some of the biggest U.S. banks are exploring whether to team up to issue a joint stablecoin, The Wall Street Journal reported on Thursday.
The conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks, the report said, citing people familiar with the matter.
However, the newspaper said that the bank consortium discussions are in early, conceptual stages and could change.
Reuters could not immediately confirm the report. Citigroup, Bank of America and Wells Fargo declined to comment on the WSJ report, while JPMorgan did not respond to a Reuters’ request for comment outside of regular business hours.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually pegged to a fiat currency such as the U.S. dollar, are commonly used by crypto traders to move funds between tokens.
One bank consortium possibility that has been discussed would be a model that lets other banks use the stablecoin, in addition to the co-owners of the Clearing House and Early Warning Services, the Journal said, citing unnamed sources.
Some regional and community banks have also considered whether to pursue a separate stablecoin consortium, it added.
Trump has promised to be the “crypto president,” popularizing its mainstream use in the U.S. He has said he backs crypto because it can improve the banking system and increase the dominance of the dollar.
(Reporting by Pretish M J in Bengaluru; Editing by Sonia Cheema)