JPMorgan explores launch of own stablecoin

JPMorgan Chase has internally discussed the possible launch of its own stablecoin. The talks are still purely exploratory and no product is currently being developed. The American bank is not alone in this: more than a dozen major financial institutions are working on plans for a joint stablecoin.

In brief:

• JPMorgan is internally exploring the possibility of its own stablecoin, but nothing is in development yet.
• The bank already has its own blockchain network and a digital payment instrument for institutional clients.
• Major banks such as Bank of America, Wells Fargo and Santander are working on a joint stablecoin initiative.

Exploration still in early stages

According to Coin Bureau, JPMorgan Chase has recently discussed a proprietary stablecoin, but no concrete steps have been taken yet. The discussions are preliminary in nature and have not led to a product so far.

The bank, incidentally, is already active in the field of digital assets. JPMorgan has the Kinexys blockchain network and JPM Coin, a tokenised form of a bank deposit that institutional clients use for payments and transactions.

Banks join forces for joint stablecoin

In addition to the internal exploration at JPMorgan, the number of financial institutions that want to develop a stablecoin together is also growing. More than twelve banks, including Bank of America, Wells Fargo and Santander, are working on plans for an international stablecoin consortium.

That movement fits a broader trend in which major banks are taking digital currencies increasingly seriously, both independently and through partnerships. Elsewhere in the world, banks are also taking steps in this area: Standard Chartered recently became the first bank to distribute a Hong Kong stablecoin.