U.S. banks are negotiating a joint issue of a “stable coin”

The largest U.S. banks are negotiating a joint issue of a “stable coin,“ according to the WSJ. The initiative is aimed at countering the growing influence of the crypto industry, sources told the publication.

The negotiations involve Early Warning Services (operator of the Zelle payment system) and The Clearing House (network for instant transfers), which belong to JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other banks.

So far, we are talking about the conceptual stage: the final decision depends on regulatory changes.

Banks fear that the massive introduction of “stable coins“ under the administration of US President Donald Trump will lead to an outflow of customer deposits.

Particular risks are associated with the possible entry of technology giants or retailers into the market. Stablecoins pegged to the dollar and backed by reserves can reduce the time for international transfers from a few days to seconds.

However, some market participants doubt the safety of such assets and the regulatory consequences of their use. According to one of the discussed models, the “stable coin“ of the banking consortium will be able to be used by third-party credit organizations.

Regional banks are also considering creating a separate alliance, but this process is more difficult for them due to fewer resources. According to Austin Campbell, founder of Zero Knowledge Consulting and professor at New York University, American banks are trying to block the development of stablecoins that offer holders interest or rewards.