Traditional banks that once pushed to curb stablecoin growth are starting to rethink their position, according to a Wall Street Journal report cited by BlockBeats on Aug. 26. As stablecoins move deeper into payments and the broader financial system, some large banks are now studying or advancing their own issuance plans to respond to pressure from crypto firms and major non-bank companies.
JPMorgan recently evaluated the possibility of launching its own stablecoin, though no formal product plan is in place. At the same time, more than a dozen financial institutions, including Bank of America, Wells Fargo and Santander, are working on a global stablecoin project. The effort may begin with a U.S. dollar stablecoin, then expand to the euro and other G7 currencies, with a primary focus on corporate clients.
The report also said BankChain Alliance, which involves 39 state banking associations and about 3,000 banks, plans to launch a bank-owned and bank-governed blockchain platform in the first half of 2027. That platform is expected to support both tokenized deposits and stablecoins. The shift comes as banks grow more concerned that stablecoins backed by non-bank players such as Visa, BlackRock and Google could erode traditional deposit and payment businesses.
Traditional banks that once lobbied to limit stablecoin development are starting to change course, according to a Wall Street Journal report cited by BlockBeats on Aug. 26. As stablecoins spread more quickly into payments and the financial system, some large banks are now studying or advancing plans for their own stablecoins in response to competitive pressure from crypto companies and major non-bank groups.
Large banks are studying issuance plans
The report said JPMorgan recently evaluated the possibility of issuing its own stablecoin, although there is no formal product plan at this stage. At the same time, more than a dozen financial institutions, including Bank of America, Wells Fargo and Santander, are advancing a global stablecoin project.
The project may start with a U.S. dollar stablecoin before expanding to the euro and other G7 currencies, and it is mainly intended for commercial clients.
BankChain Alliance targets a first-half 2027 launch
The report also said BankChain Alliance, which includes 39 state banking associations and about 3,000 banks, plans to launch a blockchain platform owned and governed by banks in the first half of 2027. The platform is set to support both tokenized deposits and stablecoins.
Banks are rethinking a defensive strategy
Banks had previously shown a stronger preference for tokenized deposits because they preserve the regulatory, accounting and credit risk framework of traditional bank deposits, while keeping funds inside the banking system.
But as non-bank institutions such as Visa, BlackRock and Google move into the stablecoin market, banks have started to worry that stablecoins could cut into traditional deposit and payment businesses. That has led more banks to view stablecoin issuance as a potential defensive strategy.
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