JPMorgan Chase along with major American banks such as Bank of America, Wells Fargo, and Citi are discussing the issuance of a common stablecoin to compete with USDT and USDC.
Although it is only in the early stages, this move shows that the banking industry does not want to stay out of the stablecoin wave. However, JPMorgan is skeptical about the forecast of 4x growth of the stablecoin market in the next 2 years, saying that it is too optimistic. The main reason is the legal restrictions in the US GENIUS and STABLE bills, which prohibit profitable stablecoins. The banking industry opposes this to protect traditional yielding products. Currently, payment stablecoins may only account for 7–8% of the crypto market. However, profitable stablecoins such as BUIDL or BENJI still have strong growth potential if the new law is passed by the end of 2025.
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