Wall Street Banks Launch Stablecoins Amid GENIUS Act
Citigroup, JPMorgan, Bank of America and DTCC are accelerating stablecoin initiatives as U.S. lawmakers advance the GENIUS Act. Citigroup is exploring a dollar-backed “Citi stablecoin” to power tokenized deposits and expand into reserve management and crypto custody. JPMorgan plans to launch JPMD on its Base network, while DTCC examines a settlement-focused stablecoin for traditional asset trades. Bank of America stands ready to issue its own token once the GENIUS Act passes. President Trump has endorsed the legislation, which aims to formalize the legal status of USD stablecoins. The stablecoin market, currently valued at $261 billion (USDT $160B, USDC $62B), could grow to $750 billion by 2026, highlighting a surge in institutional adoption and potential boosts to liquidity and on-chain activity.
Bullish
The entry of major banks into stablecoin issuance and the prospect of clear regulation under the GENIUS Act is likely to boost market confidence and liquidity. In the short term, announcements by Citigroup, JPMorgan and others can drive increased on-chain transactions and trading volumes as institutional participants test new bank-backed tokens. Over the long term, a legal framework and bank-led stablecoins may solidify USD-backed crypto assets as reliable settlement tools, attracting broader institutional adoption and potentially supporting stablecoin valuations and overall market growth.