The deliberations mark a potential shift for the world’s largest bank by market capitalisation, which has so far concentrated on tokenised bank deposits rather than issuing a conventional stablecoin. JPMorgan already operates JPM Coin, a dollar-denominated deposit token designed for institutional clients, but that product is structurally different from stablecoins such as Tether’s USDT and Circle’s USDC.
No decision to launch a JPMorgan stablecoin has been announced. The evaluation forms part of a broader reassessment across the banking industry as stablecoins move beyond cryptocurrency trading into payments, corporate treasury operations and cross-border settlements.
More than a dozen major banks are also examining a global stablecoin initiative aimed at commercial applications, with Bank of America and Wells Fargo among institutions involved in discussions. Smaller lenders are exploring similar technology as banks seek to prevent crypto-native companies and large technology groups from gaining greater control over digital payment networks.
The shift comes as the value of stablecoins in circulation approaches $290 billion. Dollar-linked tokens account for about $287 billion of that total, reflecting the dominance of the US currency in blockchain-based payments. Tether’s USDT remains the largest stablecoin, with a market value above $183 billion, while Circle’s USDC is worth more than $73 billion.
Stablecoins are designed to maintain a fixed value, usually one dollar, by holding reserves that can include cash and short-term government securities. Their ability to move across public blockchain networks around the clock has increased their appeal for transactions that would otherwise depend on banking hours, intermediaries or traditional correspondent networks.
JPMorgan has pursued a different model through JPM Coin, also known by the ticker JPMD. The product represents commercial bank deposits rather than reserves held separately by a stablecoin issuer. JPM Coin became available to institutional clients on Coinbase’s Base blockchain after testing with companies including Coinbase, Mastercard and digital-asset liquidity provider B2C2.
The bank describes JPM Coin as a deposit token rather than a cryptocurrency or stablecoin. Holders retain a claim on JPMorgan deposits, allowing the token to operate within existing banking infrastructure while supporting near-instant settlement and round-the-clock transfers.
A JPMorgan stablecoin could therefore represent an expansion beyond its existing deposit-token strategy rather than a replacement for JPM Coin. A conventional stablecoin could potentially circulate more widely on public blockchains and interact more easily with crypto exchanges, decentralised finance platforms, wallets and payment applications.
Banks have historically been cautious about that model. Industry executives have warned that widespread stablecoin adoption could shift money away from bank deposits, reducing an important source of funding for lending. The possibility that stablecoin providers could offer financial incentives has intensified the debate over whether digital tokens might compete directly with deposit accounts.
Regulatory changes have nevertheless altered the calculations. The GENIUS Act established a federal framework for payment stablecoins in the United States, setting requirements covering reserves, redemption and oversight. The legislation gave banks and other regulated financial groups greater certainty about how dollar-linked digital tokens can be issued.
Stablecoin activity is also expanding beyond crypto trading. Card spending funded through stablecoins exceeded $1 billion during July, while annual stablecoin card expenditure has been projected to reach about $50 billion by 2028. Adoption has been particularly strong where conventional cross-border payments remain costly or slow.
Financial institutions are simultaneously confronting competition from companies outside traditional banking. Payment networks, asset managers and technology groups have been examining ways to integrate stablecoins into settlement systems, while crypto businesses continue to expand into services previously dominated by banks.
JPMorgan’s blockchain operations already give it one of the most developed digital-payment infrastructures among large global banks. Its Kinexys division has spent years building systems for tokenised payments, settlement and digital assets, providing the bank with technology that could support additional forms of blockchain-based money.
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