Major US banks in early talks for joint stablecoin venture: WSJ

Leading banking institutions in the U.S. are exploring a joint venture to launch a stablecoin, as the country accelerates its crypto regulations, the Wall Street Journal reported Thursday.

The discussion of a potential joint stablecoin project involves companies co-owned by JPMorgan, Bank of America, CitiGroup, Wells Fargo and other major commercial banks, the WSJ reported, citing unnamed sources familiar with the matter.

Such companies include real-time payments network The Clearing House and Early Warning Services LLC, the fintech company behind peer-to-peer payment system Zelle.

The report added that discussions among U.S. banks remain preliminary and are subject to change, with their ultimate outcome heavily dependent on the nation's evolving stablecoin legislation.

Earlier this week, U.S. Senators voted to move forward with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act.

The Senate bill effectively sets the groundwork for stablecoin regulation by requiring such tokenized assets to be fully backed by U.S. dollars or similarly liquid assets, mandating annual audits for issuers with more than $50 billion in market capitalization, and adding language around foreign issuance.

Lawmakers now need to take votes on amendments to the bill and take steps to get a final vote on the bill. 

While the GENIUS Act gained bipartisan momentum, some Democrats emphasized the need to address President Trump's personal ties to crypto before giving the bill final approval.

Trump and his sons have been associated with crypto project World Liberty Financial, which launched its own stablecoin USD1 following the U.S. president's public support for U.S. dollar-backed stablecoins.