U.S. Banks Move Into Stablecoins, Challenging Tether and Circle

Major financial firms, including Bank of America, Wells Fargo, and Santander, are reportedly pursuing the joint issuance of a stablecoin, initially dollar-pegged, with plans to expand to G7 currencies. This move is seen as a defensive strategy to protect existing businesses from deposit outflows to stablecoins. Additionally, bankers associations in 39 U.S. states have launched the BankChain Alliance to build a blockchain network supporting deposit tokens and stablecoin issuance.