Key takeout
Major US banks are working together on the Stablecoin initiative to compete with the crypto industry. The project highlights the integration of digital assets within traditional banking infrastructure.
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America’s biggest bank is assessing the joint stubcoin initiative to compete with digital asset platforms that are rapidly gaining market share, the Wall Street Journal reported Thursday.
Now, early exploration brings together entities co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other major US banks, and sources with knowledge of the matter told the journal.
These entities are Early Alert Services (EWS) that operates the peer-to-peer payment network Zel, and Clearinghouse (TCH), which handles real-time payments between banks.
EWS is jointly owned by seven major US banks, including JPMorgan Chase, Bank of America and Wells Fargo. Meanwhile, TCH is owned by 20 dozen of the world’s largest banks, including these three.
The future of the joint Stablecoin project is based on regulatory clarity and market appetite. To date, the most prominent legislative effort in this field is genius. It aims to establish a stable issuance framework by both banks and non-banks.
The law only passed a key procedural vote earlier this week and is currently in the Senate amendment phase. A full floor vote for the proposed law is expected to arrive in the coming weeks.
A vote of 69-31 agreed.
Second to the fix process… https://t.co/qzo9xx8a3p
– Eleanorterrett (@Eleanorterrett) May 21, 2025
If enacted, the Genius Act establishes a legal framework for issuing stubcoins in the United States and encourages Wall Street investment in the crypto sector.
Early movements
JPMorgan Chase, the largest US bank by assets, is best known for its JPMorgan Chase, which is limited to use within JPMORGAN’s network, but demonstrates the early and aggressive adoption of banks to modernize traditional banking processes.
Wells Fargo has also developed and piloted a dollar-link Stablecoin called Wells Fargo Digital Cash, designed for internal settlements and cross-border payments within the bank’s global network.
Bank of America hasn’t issued anything ridiculous yet, but CEO Brian Moynihan has publicly stated that banks are ready to do so.
Speaking at the Washington Economic Club in February, Moynihan noted the ability of banks to create a stablecoin with dollars entirely, adding that such a move will ultimately depend on whether regulations allow it or not.
Crypto companies are pursuing a banking charter
A report from the Wall Street Journal in April shows that while major US banks are carefully researching their own unique Stablecoin initiatives, crypto companies such as Circle, Bitgo, Coinbase and Paxos are pursuing bank-like status.
Traditional finances have largely withdrawn from the Crypto sector after the collapse of FTX and the failure of crypto-friendly institutions such as Silvergate and Signature Bank. Access to critical banking services has been evaporated by many digital asset companies as regulatory scrutiny has intensified.
But with President Trump taking office and pledging to make the nation a “Bitcoin superpower,” the political environment has changed, and that change is creating new opportunities for crypto companies looking to solidify their role in the US financial system.
Some companies are looking for full-scale charters, while others are pursuing limited purpose licenses specifically tailored to issuing Stablecoin. For example, BITGO is reportedly approaching a charter application, and it also protects the preparation of USD1, the Stablecoin project of the Trump family’s crypto venture, World Liberty Financial.
Anchorage Digital remains the only crypto company to obtain the Federal Bank Charter secured in 2021. CEO Nathan McCauley said the process required tens of millions of dollars in compliance investments and brought regulatory scrutiny.
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