Top U.S banks including JPMorgan, Bank of America, Citigroup, Wells Fargo and others are considering creating a joint stablecoin. The move comes amid heightened competition from the crypto selector. With top cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, BNB and stablecoins powering global transactions, the U.S banks see a need to counter the competition. 

As per the reports, the banks are now holding preliminary discussions regarding the joint stablecoin launch. This highlights the growing adoption of cryptocurrencies across traditional financial giants. 

The world is currently facing widespread adoption of digital assets and traditional financial giants including commercial banks are not willing to be left behind either. As per a report by The Wall Street Journal (WSJ) on May 22, top U.S banks are making plans to launch a stablecoin. 

JUST IN: Major U.S. banks – including JPMorgan, Bank of America, Citigroup, and Wells Fargo – are exploring a joint stablecoin project, per WSJ.

The move aims to counter rising crypto competition.

The banks are scared now. 👀 pic.twitter.com/BSH5mdytEq

— Satoshi Club (@esatoshiclub) May 23, 2025

These banks including JPMorgan, Bank of America, Citigroup, Wells Fargo and others aim to counter the growing competition from the crypto sector by launching their own stablecoin. While the discussions are still in an early stage, it marks a convergence between traditional finance (TradFi) and the crypto world. 

As per WSJ, commercial banks are eye catching in the crypto space especially under Trump’s tenure. These banks have previously faced regulatory crack-down which hindered their venture into crypto. 

“Banks have been bracing for the possibility that stablecoins could become widely adopted under President Trump and siphon away the deposits and transactions they handle…The banking industry is in catch-up mode in the crypto space after a regulatory crackdown two years ago, WSJ’s wrote. 

Amid the discussion by U.S banks and other financial institutions to create joint stablecoin, the crypto community is eyeing the developments around the GENIUS Act. The bill which is aimed at introducing regulatory clarity around stablecoins passed the cloture vote process last week and will be headed to the senate for the final vote in the coming week. 

Experts believe passing of the bills will reshape the stablecoin sector, potentially fueling demand and widespread adoption in the U.S. Ryan Adams, a top crypto investor believes that fintech, bank, social media platforms will flood the stablecoin sector amid the passing of the GENIUS Act. 

“We’ll see a tidal wave of trillions in issuance as every fintech, bank, social media rushes into stablecoins – most of these already have the infrastructure – they were waiting on regulatory cover and now they’ll have it,” he shared on X. 

Amid the move by JPMorgan, Bank of America, Citigroup, Wells Fargo to launch their stablecoin, the stablecoin sector is growing immensely. As per data by DefiLlama, the total stablecoin market cap currently sits at $245.93 billion.

The total stablecoin market cap has surged by $2.67 billion over the last 7 days. This marks a 1.10% surge over the same period. The chart also shows that the market cap is peaking with incredible utilization of stablecoins experienced since late 2024. 

The data by DefiLlama also shows that USDT is topping the global stablecoin sector with 62.26% dominance. USDT currently has a total market cap of $153.10 billion. USDC comes second with $60.85 billion in market capitalization followed by Ethena USDe (USDe) with a total market cap of $5.103 billion. 

Other notable stablecoins include DAI, Sky Dollar (USDS). Recently launched Ripple USD (RLUSD) and World Liberty Financial USD (USD1) are also making headlines. USD1 reached the $2 billion market cap mark within 2 months of launch, making it the fastest stablecoin to do so. 

While several stablecoins exist, there still aren’t enough stablecoins to power the growing sector and solve everyday consumer needs. By joining forces, major U.S banks and other financial institutions could tap the potential of stablecoins. 

A dollar-pegged stablecoins backed by JPMorgan, Bank of America, Citigroup, Wells Fargo and others, can speed up more routine transactions, such as cross-border payments. These transactions usually take days in the traditional payments system.