Major banks including JPMorgan explore launching stablecoins amid payments competition

Aug 26, 2026

Major global banks, including JPMorgan Chase, Bank of America, and Wells Fargo, are exploring the launch of their own stablecoins and shared blockchain networks like the BankChain Alliance to defend their deposit bases and payments businesses. This shift comes amid intensifying competition from nonbank tech giants and crypto firms, alongside regulatory pressure. While banks have historically favored tokenized deposits to keep funds on their balance sheets, the rise of stablecoins has prompted regulators in Asia and the UK to accelerate frameworks and mandate innovation.

Bank stablecoin exploration

▪The BankChain Alliance blockchain platform plans to support stablecoins, tokenized deposits, smart payments, and automated settlement for smaller and regional banks.
▪JPMorgan Chase has held internal discussions about potentially launching its own stablecoin, though the bank has no active product in development as of August 2026.
▪The BankChain Alliance, representing state bankers associations from 39 US states, announced plans on August 25, 2026, to launch an industry-owned blockchain network targeting 2027.

Global bank consortium plans

▪The major-bank stablecoin consortium is separate from Open USD, a 140-member stablecoin network announced in June 2026 that includes Visa, Mastercard, and BNY.
▪The global stablecoin venture under discussion by major banks plans to initially back its token with US dollars before potentially expanding to euros and other G7 currencies.
▪A group of more than a dozen financial institutions, including Wells Fargo, Bank of America, and Santander, is developing a global stablecoin venture.

Tokenized deposits versus stablecoins

▪Tokenized deposits keep customer funds on a bank's balance sheet, allowing the bank to lend against them, whereas stablecoins move funds off the balance sheet into the issuer's reserves.
▪Wells Fargo announced plans in early August 2026 to launch tokenized deposits for corporate and commercial clients in fall 2026, starting with USD-to-GBP transactions.
▪According to the Federal Reserve and the Bank for International Settlements, stablecoin-driven deposit migration could lead to higher bank funding costs and eventual loan repricing.
▪JPMorgan Chase currently operates JPM Coin as a tokenized deposit product on its Kinexys blockchain platform, allowing institutional clients to move money on-chain.

Asian stablecoin regulatory acceleration

▪Shinhan Financial Group signed an agreement with Visa on August 24, 2026, to test issuing, sending, and cashing in stablecoins on Visa's payment platform.
▪South Korean regulators are working on the Digital Asset Basic Act, which includes a proposal to restrict Korean Won stablecoin issuance to consortia with at least 51% commercial bank ownership.
▪KB Financial completed a Korean Won stablecoin pilot in May 2026 on the Kaia blockchain, reducing cross-border transfer times to approximately three minutes.
▪Regulators in Asian countries, including Hong Kong, Singapore, Japan, and South Korea, are accelerating stablecoin legislation and urging local banks to prepare for stablecoin adoption.

Nonbank payments competition

▪World Liberty Financial, linked to the family of President Donald Trump, received preliminary conditional approval from the OCC to establish a bank that could issue the USD1 stablecoin.
▪Traditional finance and technology companies, including Visa, BlackRock, Google, and Mastercard, are expanding into the stablecoin market, intensifying competition with banks.
▪The Office of the Comptroller of the Currency expects to finalize its stablecoin rule under the GENIUS Act by November 2026, which will shape bank participation.

Bank of England innovation mandate

▪The Bank of England's new secondary objective will be introduced via an amendment to the Financial Services and Markets Bill, scheduled for the House of Lords in September 2026.
▪In June 2026, the Bank of England eased its sterling-pegged stablecoin rules by replacing planned individual holding caps with a £40 billion issuance limit.
▪The UK Treasury announced on August 26, 2026, that it will give the Bank of England a secondary statutory objective to support innovation in payments and digital money.