Major U.S. banks, including JPMorgan Chase and Bank of America, are exploring a joint stablecoin project to better compete with the cryptocurrency sector and its rising influence on digital payments. These discussions involve banks collaborating through their co-owned payment companies and are driven by forthcoming legislation like the GENIUS Act, which aims to set regulatory standards for stablecoin issuance. This collaboration could allow banks to enter a market currently dominated by crypto-native companies like Circle and Tether. Notably, Circle's USDC and Tether's USDT dominate the stablecoin market, estimated to be worth $245 billion. As banks assess the changing regulatory landscape, they are positioning themselves to challenge existing stablecoin issuers. Recent political momentum has revived the GENIUS Act, aiming to regulate payment stablecoins, potentially facilitating banks' entry into the stablecoin market and enhancing the adoption of digital assets.

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