US big banks, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo have held discussions on potentially launching a stablecoin that will improve transaction speeds whilst managing competition from encroaching crypto firms.
The Wall Street Journal reported that the banks are in early stages of talks. Payments platforms owned by the banking giants, such as The Clearing House and Zelle, are also being considered in the conversation.
The idea of opening the stablecoin model to banks outside the group are also being explored, according to reports.
The move follows US regulatory action towards stablecoin regulation, with the Senate pushing for the Guiding and Establishing National Innovation for Stablecoin Act (GENIUS Act).
News of the initiative comes just a day after Circle switched on its own stablecoin-based Global Payment Network. Seen as a potential Swift killer, Circle has roped in top tier banks Deutsche Bank, Standard Chartered, Société Générale and Santander to help with the roll out.