JPMorgan weighs its own stablecoin as big banks explore global consortium and thousands of smaller banks launch BankChain Alliance.
THE The Wall Street Journal reported that JPMorgan plans to launch its own stablecoin, as more than a dozen major banks explore a global stablecoin consortium, building on Tuesday’s momentum when thousands of smaller banks announced the training of the BankChain Alliance, an industry-owned blockchain network targeting a 2027 launch.
What’s the scoop?
- JPMorgan’s change: from JPMorgan potential stable coin I would be sitting next to JPM partits existing tokenized deposit product. Unlike tokenized deposits, which remain tied to money held in a specific bank, stablecoins can flow more freely between wallets, apps, exchanges and blockchains, suggesting that JPMorgan sees a use case for both.
- Unopened USD: The consortium of big banks discussed by the WSJ appears to be separate from Open USD, the 140+ member stablecoin network announced in June with Visa, Stripe, Mastercard, BlackRock, Coinbase, Google and banks including BNY and US Bank. Neither Bank of America nor Wells Fargo were among the Open USD Announced Partnerswhich makes their participation in another bank-led stablecoin effort particularly noteworthy.
- Small banks also build: AllianceBankChain plans to give small banks a shared blockchain infrastructure supporting stablecoins, tokenized deposits, smart payments and automated settlement, allowing them to compete with the “onchain-ification” of payments and deposits.
David Christophe
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David is a writer/analyst at Bankless. Before joining Bankless, he worked for a series of early-stage crypto startups and with grants from the Ethereum, Solana and Urbit foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
