Major Banks Prepare Stablecoin Launch Following US Legislation

Major American banks are strategically positioning themselves to enter the stablecoin market, following the recent passage of significant legislation governing these digital assets in the House. Bank of America, Citigroup, and JPMorgan are among the institutions quietly preparing to launch their own stablecoins, marking a significant shift in the traditional finance sector's approach to digital currencies.

Bank of America has confirmed its involvement in developing a stablecoin, although no specific launch date has been announced. During a conference call with analysts, CEO Brian Moynihan stated, "We feel both the industry and ourselves will have responses. We’ve done a lot of work." This indicates a growing interest from traditional financial institutions in the stablecoin market, which has historically been dominated by crypto-native players.

Citigroup is also exploring the issuance of a stablecoin, tentatively named “Stablecoin Citi,” aimed at facilitating digital payments. CEO Jane Fraser mentioned, "We are looking at the issuance of a Citi stablecoin. This is a good opportunity for us," during the publication of the bank's quarterly results. This move aligns with the broader trend of major banks entering the blockchain-based finance sector, following JPMorgan’s lead with its JPMD deposit token on the Base blockchain.

The political environment in the United States is favorable for these initiatives. The recent passage of three crucial laws, including the GENIUS Act, which specifically regulates stablecoins, has created a conducive atmosphere for the development of digital assets. Additionally, the pro-crypto stance of the Trump administration has further encouraged banks to explore stablecoin projects.

However, some banks are adopting a cautious approach. Morgan Stanley, for instance, is actively discussing the potential uses of stablecoins but is waiting for clearer regulatory guidelines before proceeding. CFO Sharon Yeshaya stated, "As you would expect we are actively discussing it. We’re looking both at the landscape, the uses and the potential uses for our own client base." This wait-and-see strategy is shared by many in the banking sector until the regulatory environment becomes more certain.

JPMorgan Chase, despite its CEO Jamie Dimon's past criticism of bitcoin, has not ruled out entering the stablecoin market. Dimon confirmed the bank's interest in stablecoins but did not provide details on timing or strategy. The lack of clear legal frameworks has slowed the progress of these projects, as banks like Bank of America are reluctant to fully commit without a stable regulatory environment.

Despite these challenges, the recent legislative advances and the pro-crypto attitude of the Trump administration suggest that a new phase is unfolding for American finance. The White House is preparing an executive order to authorize the inclusion of digital assets, which could pave the way for even broader institutional adoption of stablecoins. This development indicates that traditional financial institutions are increasingly recognizing the potential of stablecoins and are preparing to integrate them into their operations.