Major Banks Rethink Stablecoins as Crypto Payment Competition Intensifies

According to the Wall Street Journal on Aug. 26, banks in the U.S. are taking a fresh look at stablecoins as crypto firms and tech companies push into payments. Banks are exploring products or services, without formally committing to launches.

JPMorgan has considered launching its own stablecoin but does not have one at present.

In a statement, a spokeswoman said the bank, which CEO Jamie Dimon warned needed to explore stablecoins as competition from fintech grows, would evaluate if it needed to reconsider its options as demand and regulations evolved.

The bank already has JPM Coin on its corporate blockchain, the Kinexys blockchain platform. But this is a tokenized deposit, giving a claim on JPMorgan, rather than a stablecoin with a reserve portfolio.