Stablecoin has officially become a focal point in the financial landscape.
In recent years, cryptocurrencies were often dismissed by Wall Street, but many banks are now eager to keep pace. During recent second-quarter earnings calls, executives from five out of the six largest banks in the U.S. indicated they have either already developed stablecoin products or are planning to do so.
The interest is heightened due to Congress recently passing the GENIUS Act, the first federal legislation aimed at regulating digital currency. If signed by President Trump, it may enable traditional banks to issue stablecoins—digital tokens pegged to the dollar facilitating money transfers and payments.
Jamie Dimon, JPMorgan
JPMorgan’s CEO, Jamie Dimon, signaled the bank’s interest in this emerging field, though he expressed some skepticism. The bank recently launched what it calls “JPMD,” a type of deposit token.
Dimon commented, “A deposit token is essentially the same thing. You’re essentially transferring money via the token, which also accrues interest.” He affirmed the bank’s commitment to being involved in both JPMorgan’s Deposit Coin and stablecoins to better understand and leverage the technology.
Jane Fraser, Citigroup
Citigroup’s CEO, Jane Fraser, expressed significant enthusiasm, mentioning they are already operational with “Citi Token Services” in four markets. She emphasized the bank’s goal to lead in cross-border, real-time payments, stating, “We are focusing intently on innovations that allow clients to utilize real-time payments across borders and currencies.”
Regarding stablecoins, Fraser noted, “We are considering the issuance of a Citi stablecoin, with a strong emphasis on the tokenized deposit market, where we are very active.” She sees this as a promising opportunity for Citigroup.
David Solomon, Goldman Sachs
Goldman Sachs CEO David Solomon mentioned that the bank has dedicated teams exploring stablecoins, although he could not specify a potential product. He indicated that the firm is observing the evolution of the sector closely, seeing it as an opportunity to streamline funding and financial transactions.
Brian Moynihan, Bank of America
Bank of America’s CEO Brian Moynihan adopted a more cautious stance, acknowledging the need for stablecoin but waiting for definitive legal guidance. “We’re still trying to ascertain its significance,” he elaborated, noting a lack of immediate client demand for stablecoin. He mentioned the bank’s collaborations with stablecoin companies, stating, “The landscape will be complex, though we aim to simplify it for customers.”
Sharon Yeshaya, Morgan Stanley
Morgan Stanley CFO Sharon Yeshaya described the bank’s approach to stablecoins as cautious and primarily observational at present. She noted, “We are actively discussing the landscape and potential applications for our clients, but it remains early to determine how we will engage in this space vs. what competitors may offer.”
