David Edwards
Legacy financial institutions are entering the stablecoin arena, with JPMorgan Chase and Citigroup both revealing plans to launch digital tokens for payments and settlements. The announcements came Tuesday during respective post-earnings conference calls and mark a significant shift in how traditional finance approaches blockchain-based assets.
JPMorgan CEO Jamie Dimon confirmed the bank’s intent to participate in the stablecoin ecosystem, citing competitive pressure from fintech firms emulating traditional financial infrastructure. “We’re going to be involved in both JPMorgan deposit coin and stablecoins,” Dimon stated. “I think they’re real, but I don’t know why you’d want to use a stablecoin instead of just payment.”
Meanwhile, Citigroup CEO Jane Fraser indicated her institution is also actively exploring digital tokenization. “We are looking at the issuance of a Citi stablecoin,” Fraser said. “But probably most importantly is the tokenized deposit space, where we’re very active.”
These developments follow a May 2025 Wall Street Journal report that JPMorgan, Bank of America, Citigroup, and Wells Fargo are considering a jointly issued stablecoin. The growing interest among banks is largely attributed to improving regulatory clarity in the U.S., particularly the advancement of the GENIUS Act.
The GENIUS Act, which seeks to regulate stablecoins and their issuers, has passed the Senate and is now under review in the House. President Donald Trump called for its swift passage during the ongoing “Crypto Week,” emphasizing stablecoins’ potential to strengthen U.S. dollar dominance globally.
According to DefiLlama, the stablecoin market is experiencing rapid growth, with capitalization now at $258 billion—a 58% increase since July 2024.
Stablecoins are increasingly viewed as the most viable gateway to mainstream crypto adoption, valued for their transactional efficiency and reliability. JPMorgan’s deposit coin, a proof-of-concept token built on a public blockchain, is being positioned as a stablecoin alternative. It is currently accessible only to institutional clients.
As regulatory frameworks evolve, the entry of major banks into the digital currency space signals a broader institutional shift, potentially reshaping the global payments landscape.
