Key Takeaways
- Several leading banks actively explored or developed stablecoins after the U.S. approved the GENIUS Act.
- Still in an initial phase, banks’ projects on stablecoins are growing as the regulatory environment becomes clearer.
- Here are the top banks that have started considering launching their stablecoins.
With the U.S. Senate’s approval of the GENIUS Act, stablecoins are poised to enter a new era of regulatory certainty and mainstream adoption, putting banks at the forefront of this digital finance revolution.
As financial giants from Bank of America to Deutsche Bank explore launching their stablecoins and blockchain networks, the industry is shifting from experimentation to strategic integration.
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GENIUS Act Approval to Boost Stablecoins
The U.S. Senate passed the GENIUS Act last week, the first full U.S. regulatory framework for stablecoins. It aims to bring them under formal oversight and end the legal gray area.
Only regulated entities—banks or licensed non-banks—can now issue payment stablecoins.
All tokens must be 100% backed by safe, liquid assets like U.S. dollars or short-term Treasuries. Algorithmic and uncollateralized stablecoins are effectively banned.
The Act is expected to spur institutional player adoption by clarifying rules, as seen in Circle’s stock jump and new deals like Fiserv’s partnership with PayPal and Circle.
Experts say the stablecoin market is now set for more regulated, mainstream growth. The banks will dominate this new environment.
Which Banks Lead the Race
Bank of America
Bank of America CEO Brian Moynihan said the bank is working on launching a stablecoin and expects to move forward, though no timeline was given.
He noted that while the bank has done significant work, client demand is still low, as they need more legal clarity.
Moynihan said any rollout would likely involve partnerships, similar to how banks adopted platforms like Zelle and Venmo.
Citigroup
Citigroup CEO Jane Fraser told analysts that the bank may issue its own stablecoin to support digital payments. She emphasized the bank’s focus on tokenized deposits and called this a key opportunity.
Citi is also exploring reserve management for stablecoins and crypto custody.
The bank’s shares hit their highest level since 2008 after strong second-quarter results, a $4 billion buyback plan, and the news that it is evaluating launching its own stablecoin.
Morgan Stanley
Morgan Stanley, led by CFO Sharon Yeshaya, is exploring the potential use of stablecoins for clients.
While no launch is imminent, the bank is assessing how stablecoins could fit into its broader strategy, particularly amid regulatory uncertainty.
CEO Ted Pick noted stablecoins are among several strategic initiatives under review.
JPMorgan
JPMorgan CEO Jamie Dimon said he doesn’t fully see the appeal of stablecoins but acknowledged the bank must stay involved.
On a recent earnings call, he confirmed JPMorgan is developing both its internal deposit coin and exploring stablecoins more broadly to stay competitive.
JPMorgan Chase is exploring stablecoin applications while already operating JPM Coin, a permissioned digital token for internal corporate payments since 2019
Dimon, a longtime crypto skeptic, said understanding the space is necessary to keep pace with fintech rivals entering payments and banking.
Despite his doubts—he questioned why someone would use stablecoins over regular payments—Dimon stressed the need to engage as regulation evolves and the technology gains traction.
Goldman Sachs
Goldman Sachs‘ Head of Digital Assets, Mathew McDermott, said regulatory clarity—especially around stablecoins—will be key to large institutions’ scaling crypto adoption.
Speaking at Token2049, he emphasized that U.S. stablecoin bills could accelerate institutional use of digital currencies.
McDermott believes major players will quickly enter the market if regulations permit broader stablecoin adoption. Goldman closely monitors developments and seeks a level playing field in which to engage fully.
While already active in crypto trading and infrastructure, the firm sees stablecoin regulation as a catalyst for broader tokenization and 24/7 financial services.
Wells Fargo
Wells Fargo is piloting a tokenized dollar called Wells Fargo Digital Cash for internal cross-border settlements across its global network.
Built on R3’s Corda Enterprise blockchain, the platform aims to enable near real-time transfers without affecting underlying accounts or reconciliation processes.
The pilot, which will start with U.S. dollars, plans to expand to other currencies and eventually include all Wells Fargo branches worldwide.
Société Générale
France’s Societe Generale announced plans to launch a publicly tradable, dollar-backed stablecoin called “USD CoinVertible” through its digital asset subsidiary SG-FORGE, becoming the first major bank to enter the dollar-pegged crypto market.
The stablecoin will be issued on Ethereum and Solana blockchains, with trading expected to begin in July.
SG-FORGE previously launched a euro-based stablecoin in 2023, but it saw limited adoption with just €41.8 million circulating. Societe Generale’s stablecoins are classified as e-money tokens and regulated under the EU’s MiCA framework and the U.S. GENIUS Act.
Jean-Marc Stenger, CEO of SG-FORGE, highlighted strong demand from corporates, financial institutions, and crypto exchanges for a well-regulated dollar stablecoin. He noted that no other banking players currently operate.
BNY Mellon will act as custodian of the reserves, which will be initially held in cash before being invested in yield-generating assets.
Santander
Banco Santander is considering expanding into digital assets , including early plans to offer stablecoin and cryptocurrency access to its digital bank’s retail clients.
Sources said the stablecoin initiative is still in its early stages. Santander’s online unit, Openbank, has applied for licenses to provide retail crypto services under the EU’s new regulatory framework.
These moves reflect a broader trend among European banks embracing digital assets following the EU’s Markets in Crypto-Assets regulation.
Deutsche Bank
Deutsche Bank is exploring stablecoins and tokenized deposits as part of its growing digital asset strategy, considering whether to issue its stablecoin or join broader industry initiatives, according to Sabih Behzad, head of digital asset transformation.
The bank is also evaluating a tokenized deposit system to improve payment efficiency.
Deutsche Bank expects stablecoins to reach mainstream use. It has invested in the cross-border payments firm Partior and joined Project Agorá, a central bank-supported initiative focused on wholesale tokenized payments.
ING
Dutch banking giant ING is quietly laying the groundwork for a new stablecoin project. It’s partnering with players from traditional finance and the crypto space to establish itself in Europe’s regulated digital asset sector.
The initiative is still in its early stages, with ING exploring a consortium model with unspecified partners.
However, progress is contingent on board approval to launch a joint venture, signaling a methodical and deliberately measured strategy.
EU’s Markets in Crypto Assets Regulation (MiCA) governs the move, after it came into force in 2024 and set a high bar for stablecoin issuers.
Banks Will Use Layer 1 and 2 Blockchain Networks Mix
The Genius Act provides much-needed regulatory clarity.
Guillaume Poncin, Alchemy’s CTO, predicts that banks will soon be routinely issuing stablecoins and managing proprietary blockchains.
Poncin highlights that banks can unlock substantial revenue streams by issuing stablecoins and maintaining control over transaction flows and client relationships.
Users will enjoy quicker, round-the-clock settlements and the security and safeguards typical of traditional banking.
According to DigWatch experts , established stablecoin issuers like Circle and Tether will likely continue focusing on crypto-focused use cases and cross-border payments, leaving banks to serve institutional and corporate clients.
Banks may leverage both Layer 1 and Layer 2 blockchain solutions. Layer 1 provides strong security for high-value transactions, while Layer 2 offers scalable, cost-effective options suited for everyday payments.
Ethereum’s Layer 2 networks, secured by the mainnet, offer banks adaptable solutions that balance compliance and efficiency.
Ensuring interoperability between different bank blockchains is crucial, with new protocols enabling fast, trustless cross-chain settlements.
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