JPMorgan is reportedly considering a stablecoin alongside its JPM Coin deposit token.

Bank of America, Wells Fargo and Santander are advancing a joint global stablecoin venture.

Major banks are reconsidering stablecoins as non-bank companies expand into the market.

Major US banks are revisiting their approach to stablecoins as payment, technology and asset-management companies expand into the market.

JPMorgan Weighs a Stablecoin as Major Banks Make Their Move

JPMorgan Chase is considering whether to issue its own stablecoin, according to a Wall Street Journal report published August 26. The bank said it has no current plans to launch one, but a spokesperson said it would consider its options in light of customer demand and the evolving regulatory environment.

JPMorgan already operates JPM Coin, a tokenized deposit product built on its Kinexys blockchain infrastructure.

Separately, more than a dozen financial institutions, including Bank of America, Wells Fargo and Santander, are reportedly advancing a joint stablecoin venture aimed at corporate clients. According to sources cited by the Journal, the project is expected to begin with a dollar-denominated token before expanding to the euro and other G7 currencies.

The developments reflect a shift from the position banks have historically taken on stablecoins. In general, banks have preferred tokenized deposits, which remain tied to insured bank accounts, over stablecoins.

Why Are US Banks Reconsidering Stablecoins Now?

Banks have long favored tokenized deposits over stablecoins because tokenized deposits are linked to insured bank accounts. That stance has shifted as non-bank companies, including Visa, BlackRock, Google and DoorDash, move into a stablecoin market long dominated by Tether and Circle.

The potential impact on banks has become clearer in recent months.

S&P Global Ratings warned in June that significant growth in stablecoin usage could have meaningful implications for US banks. The agency said the direct threat to US bank deposits remained limited because stablecoins were primarily used outside the US and as settlement assets, but it added that the risk would increase if stablecoins became widely used for payments in the US.

By July, around two-thirds of US bank executives surveyed by S&P Global Market Intelligence said their banks could lose deposits to stablecoins if consumers were allowed to earn rewards on them.

Research from Oliver Wyman on Citi’s scenarios through 2030 also found that stablecoin growth could raise banks’ funding costs and reduce revenue from cross-border payments, while creating new revenue opportunities from stablecoin redemptions and other services.

That tension is now showing up in banks’ actions. Stablecoins could compete with parts of the existing banking business while also creating a new market in which banks could participate, which helps explain why the conversation has moved from theory to product planning.

The shift is also becoming visible at the infrastructure level.

On August 26, DailyCoin reported on the BankChain Alliance, formed by 39 US state banking associations. The initiative aims to build bank-owned infrastructure for tokenized deposits, stablecoins and programmable payments, with a target launch in 2027. The participating associations represent hundreds of financial institutions and are currently selecting a technology partner.

The move follows other bank-led blockchain projects, including an on-chain money initiative involving JPMorgan Chase, Bank of America, Citi, BNY and Wells Fargo.

What the Stablecoin Shift Could Mean for Banks

JPMorgan Global Research has projected that the stablecoin market could reach $500 billion to $750 billion in the coming years. JPMorgan researchers have also described stablecoins as a potential settlement mechanism for tokenized assets.

That may help explain why banks that previously preferred tokenized deposits are now considering stablecoins: the market is growing, non-bank companies are entering it, executives are increasingly concerned about possible deposit losses, and banks are evaluating stablecoins as part of the infrastructure for tokenized assets. For readers tracking the sector, the main thing to watch is whether bank-led projects stay focused on corporate settlement and internal infrastructure or move closer to broader customer-facing payment use cases.