Key Takeaways
- Major US banks are collaborating on a stablecoin initiative to compete with the crypto industry.
- The project highlights the integration of digital assets within traditional banking infrastructure.
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Top American banks are evaluating a cooperative stablecoin initiative to compete with digital asset platforms that are rapidly gaining market share, the Wall Street Journal reported Thursday.
Now in early exploration, the effort brings together entities co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other leading American banks, sources with knowledge of the matter told the Journal.
Those entities are Early Warning Services (EWS), which operates the peer-to-peer payment network Zelle, and The Clearing House (TCH), which handles real-time payments between banks.
EWS is jointly owned by seven major US banks, including JPMorgan Chase, Bank of America, and Wells Fargo. TCH, meanwhile, is owned by two dozen of the world’s largest banks, also including those three.
The future of the joint stablecoin project rests on regulatory clarity and market appetite. As of now, the most remarkable legislative effort in this space is the GENIUS Act, which aims to establish a framework for stablecoin issuance by both banks and nonbanks.
The GENIUS Act, short for the Guiding and Establishing National Innovation for US Stablecoins Act, just passed a critical procedural vote earlier this week and is currently in the Senate amendment phase.
A full floor vote for the proposed legislation is expected to arrive next week, according to the latest update from journalist Eleanor Terrett.
If enacted, the GENIUS Act will establish a legal framework for issuing stablecoins in the US, encouraging Wall Street investment in the crypto sector.
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