Major US banks are in discussions to jointly issue a “stablecoin,” according to WSJ.
The initiative aims to counter the growing influence of the crypto industry, sources told the publication.
Participants in the talks include Early Warning Services (operator of the Zelle payment system) and The Clearing House (a network for instant transfers), owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other banks.
The discussions are still at a conceptual stage: the final decision depends on regulatory changes, including the GENIUS Act concerning stablecoins.
Banks fear that the widespread adoption of “stablecoins” under the administration of US President Donald Trump could lead to an outflow of customer deposits. Particular risks are associated with the potential market entry of tech giants or retailers.
Stablecoins, pegged to the dollar and backed by reserves, could reduce the time for international transfers from several days to seconds. However, some market participants doubt the safety of such assets and the regulatory implications of their use.
One of the models under discussion would allow third-party credit institutions to use the banking consortium’s “stablecoin.” Regional banks are also considering forming a separate alliance, but this process is more challenging for them due to fewer resources.
According to Austin Campbell, founder of Zero Knowledge Consulting and a professor at New York University, American banks are trying to block the development of stablecoins that offer holders interest or rewards.
The Empire Lobbies Back
As I had predicted, I am hearing the bank lobby is panicking about stablecoins and specifically the ability to pay any form of rewards or interest.
So for my friends on the Democratic side, let me simplify what you are hearing:
The banks want you to…
— Austin Campbell (@CampbellJAustin) May 21, 2025
In his view, traditional financial institutions see a threat in technology capable of undermining their business model.
“The banks want you to protect their cartel while they continue to fleece your constituents,” wrote Campbell, addressing Democrats in Congress.
He criticized the fractional reserve system, which allows financial institutions to earn super-profits while paying minimal interest to clients.
Industry lobbyists argue that offering yields on stablecoins would “harm” banks. Campbell called this an attempt to maintain a monopoly.
The expert urged politicians not to support bans on such models in the crypto industry.
Campbell’s remarks came amid the launch of several projects offering stablecoin holders passive income. In February, the SEC approved the first such token — YLDS from Figure Markets with an initial yield of 3.85% per annum.
Tether co-founder Reeve Collins announced the Pi Protocol project, where users can issue the USP stablecoin in exchange for USI — a token with interest payments.
“It is unacceptable for stablecoin holders not to receive at least a risk-free rate,” stated Phoenix Labs CEO Sam McPherson.
According to him, new models will challenge traditional banks, forcing them to increase interest rates on deposits for clients.
Earlier, special advisor to Trump on AI and cryptocurrencies David Sacks predicted a rise in interest in government bonds following the adoption of the GENIUS Act.