Major US Banks Prepare Stablecoins as GENIUS Act Advances
JPMorgan, Bank of America, Citigroup, and Morgan Stanley are developing stablecoin initiatives as the US government moves to establish a federal regulatory framework via the GENIUS Act.
Major U.S. financial institutions are preparing to launch their own stablecoins following the Senate's bipartisan passage of the GENIUS Act. The legislation mandates one-to-one reserves and monthly audits for issuers, aiming to integrate digital tokens into traditional payment systems. While the bill has cleared the Senate, it faces a House vote and opposition from Representative Marjorie Taylor Greene, who argues the law must explicitly ban central bank digital currencies to prevent government surveillance.
JPMorgan Chase has already launched JPMD, a tokenized deposit coin for institutional clients. CEO Jamie Dimon stated the bank must be involved in stablecoins to avoid ceding ground to fintech competitors, despite his skepticism regarding their appeal over traditional payments. Similarly, Citigroup CEO Jane Fraser confirmed the bank is exploring a Citi stablecoin, while Bank of America CEO Brian Moynihan noted the firm is exploring initiatives pending further legal clarity.
Other institutions are monitoring the landscape, with Morgan Stanley CFO Sharon Yeshaya stating the firm is discussing potential uses for its client base. This shift occurs as the global stablecoin market, currently valued at approximately $260 billion, faces new regulations prohibiting direct returns to users. U.S. Treasury Secretary Scott Bessent predicts the market could exceed $2 trillion by 2028, supported by a crypto-friendly agenda from the Trump administration.
