Amid growing competition from FinTech companies and the accelerating digitization of payments, major U.S. banks Citigroup and JPMorgan announced plans to enter the stablecoin market.
Citigroup, the third-largest bank in the U.S., is exploring the possibility of launching its own stablecoin and is actively investing in infrastructure for the use of tokenized deposits, according to Reuters.
Jane Fraser, CEO of Citigroup, stated that the bank views the potential issuance of its own stablecoin as part of its digital payments strategy. However, the primary focus remains on tokenized deposits, where the bank is already highly active.
In addition to developing its own stablecoin, Citigroup is exploring reserve management tools to support stablecoin issuance and is considering the launch of custodial solutions for storing crypto assets. Fraser notes that interest in this area from institutional investors and clients focused on digital assets continues to grow.
At the same time, Jamie Dimon, CEO of JPMorgan, announced the launch of a limited version of the bank’s stablecoin for corporate clients. According to him, the bank can’t afford to sit on the sidelines while FinTech firms rapidly encroach on traditional banking sectors.
Dimon also confirmed the bank’s plans for blockchain initiatives. “We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” said JPMorgan’s CEO, while reiterating his personal skepticism toward stablecoins. He states he doesn’t get the appeal of stablecoins, but he also can’t afford to stay on the sidelines.
These statements come amid rapid development from FinTech companies offering stablecoin-based payment solutions. PayPal already launched its own stablecoin, PYUSD, widely used for cross-border money transfers. FinTech giant Ant Group announced plans to integrate the USDC stablecoin into its international blockchain platform to optimize cross-border settlements. Other major FinTech firms, including Alchemy Pay, Stripe, and many more, also plan to launch stablecoin-based solutions. Overall, around 86% of traditional financial institutions view stablecoins as a key element of the modern financial ecosystem.
The growing popularity of stablecoins for international business was also highlighted by Max Krupyshev, CEO of CoinsPaid. According to him, stablecoins serve as an alternative to traditional banking infrastructure and are becoming a new universal means of payment. “Stablecoins are especially popular in countries where the traditional banking system can’t meet the demand of businesses and the population for access to financial services,” said Max.
Сообщение Major U.S. Banks Plan to Launch Their Own Stablecoins появились сначала на CoinsPaid Media.
