Major US financial institutions are reportedly in early talks to create a jointly issued stablecoin, according to a Wall Street Journal report. This project could significantly shift how traditional banks approach digital assets, aligning with growing institutional and regulatory interest in blockchain-based finance.

The Wall Street Journal, citing sources familiar with the discussions, indicated that participants include entities linked to JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other leading banks. The initiative is currently in its exploratory phase, with no official confirmation. Discussions are centered around a stablecoin model involving The Clearing House, a real-time payments consortium, and Early Warning Services, the fintech firm behind the Zelle payment platform. The proposed coin would likely be designed for use across participating banks, with one version allowing broader access to institutions beyond the core issuers.

The banking sector’s interest in stablecoins follows a broader regulatory push in the United States to clarify the status and use of these digital instruments. The Senate has advanced the Guiding and Establishing National Innovation for US Stablecoins Act, or the GENIUS Act, which seeks to implement a formal legal framework for stablecoin issuance and oversight.

The bill would require stablecoins to be fully backed by reserves, such as US dollars or equivalent liquid assets, and mandate regular audits for issuers with large market capitalizations. If passed, the GENIUS Act could become the first significant federal legislation on stablecoins in the United States, addressing cross-border issuance and operational transparency.

Legislative momentum appears to be opening doors for traditional financial players, who have mostly remained on the sidelines of crypto asset innovation due to unclear regulations. JPMorgan already operates JPM Coin for institutional clients, but a broader initiative involving multiple banks and a potentially public-facing token would represent a more expansive effort. Smaller regional and community banks are also evaluating the potential of forming a separate consortium focused on similar goals, reflecting widespread interest in blockchain settlement mechanisms.