Major U.S. Banks and PayPal Accelerate Stablecoin Rollouts
Bank of America and JPMorgan Chase are accelerating their entry into the stablecoin market. Earlier this year, Bank of America issued an RFI on a dollar‐pegged digital dollar stablecoin to speed up interbank and cross‐border payments. JPMorgan plans to expand its existing JPM Coin pilot into broader stablecoin services. PayPal’s PYUSD is already live on Ethereum and Solana, with an Arbitrum deployment and rewards program to boost adoption. The global stablecoin market has grown to $258.5 billion in market value with $143.1 billion in average daily trading volume. Regulators, including the SEC and Federal Reserve, are weighing targeted exemptions to foster asset tokenization. Traders should monitor stablecoin issuance updates and regulatory rulings, as wider bank adoption and new payment use cases could reshape liquidity and trading volumes.
Bullish
The announcement that Bank of America and JPMorgan Chase are advancing dollar‐pegged stablecoin projects, alongside PayPal’s live PYUSD deployment, is bullish for the stablecoin sector. In the short term, traders can expect increased demand for on-chain dollar tokens as institutions test pilots and liquidity pools expand. Faster settlement times and lower fees will likely attract volume away from traditional rails, boosting transaction flow on Ethereum, Solana, and Layer-2 networks like Arbitrum. Over the long term, regulatory clarity and targeted exemptions could pave the way for wider adoption of tokenized assets by banks and payments firms. Enhanced institutional participation will underpin stablecoin credibility, deepen market liquidity, and create new arbitrage and trading opportunities, supporting price stability and growth for tokens such as USDC, USDT and PYUSD.