Major US banks plan a regulated stablecoin under GENIUS Act, aiming to reshape the $243B stablecoin market - IcoHolder.

A major shift is underway in the stablecoin landscape as America’s largest banks prepare to enter the blockchain arena. With the GENIUS Act gaining strong Senate support, JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup are reportedly in early talks to launch a joint, fully regulated stablecoin, aiming to rival established players like Tether and Circle.

The initiative also includes key payment networks such as Zelle and the Clearing House’s real-time payment system. If successful, this bank-backed stablecoin could leverage the immense trust and regulatory compliance associated with traditional finance to disrupt the $243 billion stablecoin market. Currently, Tether’s USDT dominates with a $152 billion share, but a stablecoin issued by major US banks could quickly shift the balance by offering unmatched liquidity and security.

Crypto users are already debating the implications. While such a move could boost mainstream adoption and stability, concerns about centralization in the decentralized finance space are rising. Cardano founder Charles Hoskinson, who predicted institutional blockchain adoption, welcomed the news on social media, highlighting this as a long-expected evolution. Reports of Meta exploring stablecoins further underscore the growing institutional interest.

The timing aligns closely with the GENIUS Act’s regulatory clarity and a crypto-friendly White House under President Trump. This combination creates fertile ground for banks to merge their longstanding trust with blockchain’s speed and transparency, positioning themselves to play a major role in the future of digital assets.