NEW YORK, May 23 (Xinhua) -- The United States' biggest banks are exploring whether to team up to issue a joint stablecoin, a step intended to fend off escalating competition from the cryptocurrency industry, The Wall Street Journal has reported.
The conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks, according to the report. Those include Early Warning Services, the operator of the peer-to-peer payment system Zelle, and the Clearing House, the real-time payment network.
"The bank consortium discussions are in early, conceptual stages and could change," noted the report. Any final decision would depend on the fate of legislative actions around stablecoins and other factors, such as whether the banks find there would be enough demand for them.
Banks have been bracing for the possibility that stablecoins could become widely adopted under U.S. President Donald Trump and siphon away the deposits and transactions they handle, particularly if big tech companies or retailers get in on the action. The banking industry is in catch-up mode in the crypto space after a regulatory crackdown two years ago, it added.
