JPMorgan weighs stablecoin launch as Wells Fargo and banks advance joint venture

JPMorgan recently held preliminary discussions about launching its own stablecoin, The Wall Street Journal reported Wednesday, citing people familiar with the matter, though no product is currently under development.

The largest US bank already has JPM Coin, a tokenized deposit, and operates its own blockchain. A JPMorgan spokeswoman said the bank has no plans to issue a stablecoin but would evaluate its options based on customer demand and regulatory developments.

Meanwhile, a group of more than a dozen financial institutions including Wells Fargo, Bank of America and Santander has been developing a stablecoin venture that could operate globally.

The banks are considering a token initially backed by dollars, with plans to expand to euros and potentially other G7 currencies. The stablecoin would focus on commercial applications, with use cases varying by market.

The development comes after The Wall Street Journal reported last May that some of the largest US banks were exploring a joint stablecoin initiative. The discussions involved entities tied to JPMorgan, Bank of America, Citigroup, Wells Fargo and other major lenders.

This is a developing story.