Banks explore stablecoins as payment competition intensifies

Major U.S. and international banks are reassessing the role of stablecoins amid growing competition from crypto firms and fintech companies in the payments space.

Bank interest and internal evaluations

JPMorgan confirmed it has no current plan to issue a stablecoin, though the bank has recently evaluated the option internally. The bank continues to operate JPM Coin, a deposit token that represents a claim against JPMorgan rather than a broadly transferable stablecoin.

Consortium efforts for a multicurrency stablecoin

More than a dozen global banks, including Bank of America, Wells Fargo and Santander, are reportedly discussing a shared stablecoin venture that would start with a U.S. dollar token and could later expand to euros and other G7 currencies. Details on membership, governance, backing arrangements or timelines have not been disclosed.

BankChain Alliance for blockchain payments

Separately, 39 state banking associations formed the BankChain Alliance, aiming to build a shared blockchain infrastructure for stablecoins, tokenized deposits, smart payments and automated settlement. The alliance targets a 2027 launch and plans an interoperable, industry‑governed network, though technology partners and regulatory frameworks remain undefined.

Regulatory landscape

The GENIUS Act provides a framework for payment stablecoin issuers, but several implementing rules are still pending. The Office of the Comptroller of the Currency expects to finalize its stablecoin rule by November 2026, which will shape reserve management, disclosures, redemption processes and bank participation.

Implications for banks

Banks must weigh the commercial value of stablecoins against tokenized deposits and existing instant‑payment systems. Crypto‑native stablecoins offer broader blockchain distribution, while deposit tokens keep funds on the bank’s balance sheet and within existing regulatory protections.