From Boycott to Adoption? Wall Street Banking Giants Start Considering Issuing Proprietary Stablecoins

BlockBeats News, August 26th, according to WSJ, as stablecoins accelerate their penetration into the payment and financial system, traditional banks that had previously been actively lobbying to restrict stablecoin development are beginning to change their attitudes. Some large banks are now researching or advancing their own stablecoin plans to counter the competitive pressure brought by cryptocurrency companies and non-bank giants.

The report stated that JPMorgan Chase recently evaluated the possibility of issuing its own stablecoin, but currently, there is no formal product plan. At the same time, more than ten financial institutions, including Bank of America, Wells Fargo, and Santander, are advancing a global stablecoin project. Initially, it may focus on a USD stablecoin, then expand to the Euro and other G7 country currencies, mainly serving corporate clients.

In addition, the BankChain Alliance, involving 39 state banking associations and around 3,000 banks, is also planning to launch a bank-owned and governed blockchain platform in the first half of 2027, supporting tokenized deposits and stablecoins.

Previously, banks were more inclined to develop tokenized deposits because they could maintain the regulatory, accounting, and credit risk framework of traditional bank deposits and keep funds within the banking system. However, with non-bank institutions such as Visa, BlackRock, and Google actively entering the stablecoin market, the banking industry is beginning to worry that stablecoins may erode traditional deposit and payment business. Banks are gradually seeing stablecoin issuance as a potential defensive strategy.