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In response to increasing competition from FinTech firms and the swift digitization of payment systems, prominent U.S. banks Citigroup and JPMorgan have revealed intentions to enter the stablecoin sector.
Citigroup, the third-largest bank in the United States, is investigating the potential for launching its own stablecoin and is actively investing in the infrastructure necessary for tokenized deposits, as reported by Reuters.
Jane Fraser, the CEO of Citigroup, indicated that the bank considers the potential issuance of its own stablecoin as a component of its digital payments strategy. Nevertheless, the primary emphasis remains on tokenized deposits, an area where the bank is already significantly engaged.
Alongside the development of its stablecoin, Citigroup is looking into reserve management tools to facilitate stablecoin issuance and is contemplating the introduction of custodial solutions for the safekeeping of crypto assets. Fraser remarked that there is a growing interest in this domain from institutional investors and clients focused on digital assets.
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Concurrently, Jamie Dimon, CEO of JPMorgan, announced the rollout of a limited version of the bank’s stablecoin aimed at corporate clients. He expressed that the bank cannot afford to remain passive while FinTech companies swiftly penetrate traditional banking domains.
Dimon also reaffirmed the bank’s commitment to blockchain initiatives. “We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” stated JPMorgan’s CEO, while reiterating his personal doubts regarding stablecoins. He mentioned that he does not comprehend the allure of stablecoins, yet he cannot afford to remain inactive.
These remarks emerge amidst rapid advancements from FinTech companies providing stablecoin-based payment solutions. PayPal has already introduced its own stablecoin, PYUSD, which is widely utilized for cross-border money transfers. FinTech leader Ant Group has announced plans to incorporate the USDC stablecoin into its international blockchain platform to enhance cross-border settlements. Other significant FinTech entities, including Alchemy Pay, Stripe, and several others, are also preparing to launch stablecoin-based offerings. Overall, approximately 86% of traditional financial institutions regard stablecoins as a crucial component of the contemporary financial ecosystem.
The rising acceptance of stablecoins for international commerce was also emphasized by Max Krupyshev, CEO of CoinsPaid. He noted that stablecoins provide an alternative to conventional banking infrastructure and are emerging as a new universal payment method. “Stablecoins are particularly favored in regions where the traditional banking system fails to meet the demand of businesses and the public for access to financial services,” stated Max.
Сообщение Major U.S. Banks Plan to Launch Their Own Stablecoins появились сначала на CoinsPaid Media.
