Multiple major U.S. banks plan to jointly launch a stablecoin, progress depends on legislative process

JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major U.S. commercial banks are in preliminary discussions about jointly launching a stablecoin. Institutions involved in the discussion include The Clearing House, which is jointly owned by several banks, and Early Warning Services LLC, the company behind Zelle.

The stablecoin project is still in its early stages, and progress will heavily depend on the upcoming stablecoin legislation in the U.S. The National Innovation and Stablecoin Establishment Act (GENIUS Act) has garnered bipartisan support, requiring that stablecoins be fully backed by U.S. dollars or other highly liquid assets, and stipulating that issuers with a market capitalization exceeding $50 billion must undergo annual audits, while also clarifying terms related to overseas issuance. However, before the bill reaches the final vote, some Democratic lawmakers are calling for further examination of the relationship between Trump and cryptocurrency projects. Reports indicate that Trump and his son have been linked to the World Liberty Financial project, which issues the USD1 stablecoin.