Major U.S. Banks Weigh Joint Stablecoin Venture as Yield-Bearing Tokens Raise Pressure

Several leading U.S. banks—including JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America—are in the early stages of discussions to develop a joint stablecoin initiative. The consortium-style project would aim to streamline interbank payments and improve the infrastructure for digital asset transactions, according to a recent Wall Street Journal report. s. Though still in preliminary talks, the effort underscores a major shift as traditional financial institutions look to compete more aggressively in the evolving digital currency space.

The stablecoin, if approved and launched, would likely be pegged to the U.S. dollar and subject to regulatory oversight, mirroring efforts by fintech players in the sector. This move suggests banks are seeking to assert greater control over the future of digital assets rather than leaving the space to crypto-native firms. However, the project faces an uncertain future as the GENIUS Stablecoin act makes its way through the halls of congress.

While the initiative is still under wraps and unnamed, the ambition behind it is clear: create an institutionally backed digital currency that could challenge existing players and align with upcoming stablecoin regulations. If successful, the project could significantly alter the digital payments landscape in the U.S.

NYU Professor Warns Banks Are 'Panicking' Over Yield-Bearing Stablecoins

While banks are exploring joint ventures to enter the stablecoin space, some experts argue these efforts are as much about self-preservation as innovation. Austin Campbell, a finance professor at New York University, recently posted to social media that banks are "in a panic" over the rise of yield-bearing stablecoins—tokens that offer users interest on their holdings, much like traditional savings accounts, but often with higher returns.

The Empire Lobbies Back

As I had predicted, I am hearing the bank lobby is panicking about stablecoins and specifically the ability to pay any form of rewards or interest.

So for my friends on the Democratic side, let me simplify what you are hearing:

The banks want you to…

— Austin Campbell (@CampbellJAustin) May 21, 2025

According to Campbell, these stablecoins are beginning to undermine traditional banking models, particularly those that rely on low-interest savings products.The professor pointed out that this shift represents a direct competitive threat to banks, especially if regulatory frameworks begin to legitimize and support yield-bearing stablecoins. He characterized banks’ attempts to enter the stablecoin space as defensive, designed to maintain their grip on consumer capital and financial influence.