After Shunning Bitcoin, Banks Now Want Their Own Crypto

Some of America’s largest banks missed the Bitcoin boom. Now they’re trying to reenter the crypto space—this time by issuing their own stablecoin—but their success is far from guaranteed, Adam Claek reported for Barron’s Daily.

The move would mark a major reversal for traditional banks.

JPMorgan Chase, Bank of America, and Citigroup are in talks to potentially launch a joint stablecoin, a type of digital token pegged to the U.S. dollar.

The move would mark a major reversal for traditional banks, which have been slow and skeptical about cryptocurrency. As recently as Monday, JPMorgan CEO Jamie Dimon reiterated that he is "not a fan" of Bitcoin, even as the bank began allowing trading in the asset.

Stablecoins, which are seen as less volatile than cryptocurrencies like Bitcoin, are appealing because they can facilitate faster cross-border transactions. The recently passed GENIUS Act aims to regulate stablecoins by requiring backing from liquid assets and setting clear risk standards.

Still, banks trail far behind major players already dominating the market. Tether and Circle are the two largest stablecoin issuers, with close ties to crypto exchanges Bitfinex and Coinbase, respectively.

They now face competition from firms such as the Trump family’s World Liberty Financial, which announced plans in March to launch its own stablecoin.

A hesitant banking consortium with little experience in the crypto space may struggle to catch up—especially as even political clout appears limited, with President Donald Trump reportedly hosting memecoin investors at a private dinner just last night.