WSJ "Citi, JPMorgan Consider Joint Stablecoin Issuance"

Global investment banks (IB) such as JPMorgan and Citigroup are reportedly considering the joint issuance of stablecoins.

The Wall Street Journal (WSJ) reported on the 22nd (local time) that "major U.S. banks are considering issuing joint stablecoins to compete with the cryptocurrency industry." WSJ stated, "Currently, participants in the (stablecoin) discussions include JPMorgan, Bank of America (BoA), Citigroup, and Wells Fargo," adding that "the bank consortium's discussions are still in the early stages."

Large U.S. banks see stablecoins as a way to enhance the efficiency of financial transactions. Utilizing stablecoins can significantly increase the speed of transactions such as cross-border remittances and reduce costs such as fees. WSJ noted, "Stablecoins are an efficient means of moving funds," and "this move by the banking sector is the latest example of traditional finance and cryptocurrency finance getting closer."

The biggest variable is the Genius Act (Stablecoin Act), which recently passed the first hurdle in the U.S. Senate. The U.S. Democratic Party intends to add anti-corruption provisions to the Genius Act, targeting the cryptocurrency business of former President Donald Trump and his family. WSJ reported, "(The bank consortium) could develop differently depending on future legislative procedures and market demand," and "how bills related to stablecoin issuance, such as the Genius Act, are passed will be an important variable."