Wall Street Journal (gated) report. Major U.S. banks are exploring a joint stablecoin to compete with the crypto industry.
- Banks see an opportunity in using stablecoins for faster transactions, like in cross-border payments, but there are still security and regulatory concerns.
- One possible model discussed would allow other banks to use the stablecoin.
- The bank consortium discussions are in early, conceptual stages and could change.
- Conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency like the US dollar. It aims to combine the stability of traditional money with the efficiency of digital assets.
This article was written by Eamonn Sheridan at www.forexlive.com.
