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According to the Wall Street Journal on Aug. 26, banks in the U.S. are taking a fresh look at stablecoins as crypto firms and tech companies push into payments. Banks are exploring products or services, without formally committing to launches.
JPMorgan has considered launching its own stablecoin but does not have one at present. In a statement, a spokeswoman said the bank, which CEO Jamie Dimon warned needed to explore stablecoins as competition from fintech grows, would evaluate if it needed to reconsider its options as demand and regulations evolved.
The bank already has JPM Coin on its corporate blockchain, the Kinexys blockchain platform. But this is a tokenized deposit, giving a claim on JPMorgan, rather than a stablecoin with a reserve portfolio. This distinction is important, because banks still need to weigh their business needs against the blockchain-based payment schemes.
More than a dozen more banks are reported to be considering joining the consortium, including Bank of America, Wells Fargo and Santander, and the platform may be extended beyond the US dollar-pegged token to the euro or other G7 currencies post-launch. There is currently no known membership list, governance framework, reserve framework or launch schedule.
Community and regional banks are pursuing an alternative path: On Aug. 25, 39 state bankers associations announced the creation of BankChain Alliance, an industry-owned and governed blockchain initiative to include stablecoins, tokenized deposits, smart payments and settlement automation.
Although the alliance includes thousands of banks, membership in a participating association does not necessarily mean membership in the alliance.
BankChain has plans to start the system in 2027 and claims the infrastructure will be interoperable with other payment networks. The technology partner has yet to be determined, and details related to the architecture, funding, membership, and regulatory licensing remain unknown, though the project may provide access to shared blockchain technology infrastructure for smaller financial institutions.
Regulation will determine what consumers can buy. In the United States, the GENIUS Act has established a regulatory framework for stablecoin issuers, which is expected to be implemented.
The Office of the Comptroller of the Currency has recommended reserve, redemption, risk management, custody, supervision, and issuer requirements, with Comptroller Jonathan Gould stating rulemaking is expected to be finalized in November 2026.
Banks will additionally need to consider whether stablecoins might provide advantages over tokenized deposits and instant payment systems. For example, stablecoins may provide relatively more blockchain portability, while tokenized deposits would remain on bank balance sheets and within the regulatory perimeter.
The course of the industry will be revealed through regulatory applications, consortium participants, technology selections, and the dates of product launches.
Source: <a href="https://<a href="https://xpertsstudio.com/will-bitcoin-rise-as-a-debasement-resistant-assets/” title=”Will Bitcoin rise as a debasement-resistant assets?”>bitcoinfoundation.org/news/stablecoin-news/major-banks-rethink-stablecoins-as-crypto-payment-competition-intensifies/” target=”_blank” rel=”nofollow noopener”>bitcoinfoundation.org