Yeliz Akmaca 
- JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo have begun discussions for a joint stablecoin project.
Leading financial institutions in the US are taking action to transform digital finance. This move aims to increase competition against the growth of the cryptocurrency sector and the entry of tech giants into finance.
The banks are collaborating with organizations managing payment systems like Early Warning Services and the Clearing House, which oversee Zelle. The goal is to make payments faster, cheaper, and more secure. Although the talks are not official yet, the strategy planning process is accelerating. The banks may advance or cancel the project depending on customer demands and regulatory frameworks.
Stablecoin and Blockchain Technology
The planned stablecoin will be pegged to the US dollar and operate on blockchain infrastructure. This will speed up international transfers and large transactions at a lower cost. Additionally, blockchain’s transparency and security advantages will enhance financial efficiency. This system aims to bridge traditional finance with the digital economy.
GENIUS Act: New Rules for Digital Finance
The GENIUS Act is an important regulation aimed at establishing the legal infrastructure for the digital dollar. This law grants banks and non-bank financial institutions the authority to issue stablecoins. Publicly traded technology companies can also enter this space under certain rules.
The law provides a comprehensive framework to regulate digital finance. It sets uniform rules for all stakeholders, creating a standardized regulatory structure. It prioritizes security and transparency. Organizations apply the highest security standards to protect customer data and transactions. Banks aim to align the project with US regulatory bodies. During this process, they evaluate technical infrastructure and carefully analyze customer demands. The goal is to maintain the highest security level and meet user needs.
- Permission for banks to issue stablecoins
- Permission for non-bank financial firms to issue stablecoins
- Limited stablecoin permissions for publicly traded tech companies
- Proposal for a uniform regulatory framework
For example, Donald Trump launched his own meme coin. In March, his family-connected company, World Liberty Financial, announced plans to issue a stablecoin. These moves are pushing major banks to accelerate their digital strategies. Banks do not want to lose advantages to aggressive and flexible competitors. Many crypto-focused companies are striving to comply with official banking regulations. These firms believe the GENIUS Act will make the process more accessible.
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