Legacy finance discovers stablecoins as JPMorgan, Citigroup consider market entry

JPMorgan Chase, the largest bank in the United States with $3.6 trillion in assets, has plans to “to be involved in […] stablecoins,” CEO Jamie Dimon said on Tuesday during an earnings conference call. According to Dimon, JPMorgan’s move into the stablecoin space is partly driven by competition from fintech companies, which are increasingly trying to replicate features of the traditional financial system. “We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said. “I think they’re real, but I don’t know why you’d want to [use a] stablecoin as opposed to just payment.” Dimon's comments came the same day Citigroup announced its own plans to enter the stablecoin race. During a post-earnings conference call on Tuesday, Citigroup CEO Jane Fraser told analysts that the bank is considering issuing a stablecoin to facilitate digital payments. "We are looking at the issuance of a Citi stablecoin, but probably most importantly is the tokenized deposit space, where we're very active," Fraser said. "This is a good opportunity for us." In May 2025, The Wall Street Journal reported that a group of big banks was considering issuing a joint stablecoin . That group reportedly included JPMorgan, Bank of America, Citigroup and Wells Fargo. Another factor driving banks’ interest in the stablecoin space is the improving regulatory environment in the United States. The GENIUS Act, which would regulate stablecoins and their issuers , has passed the Senate and is currently under consideration in the House of Representatives. US President Donald Trump called for the GENIUS Act to be passed on Tuesday amid Congress’s “Crypto Week.” Dollar-pegged stablecoins are often seen as a way to increase dollar dominance worlwide. Related: GENIUS Act ‘legitimizes’ stablecoins for global institutional adoption According to DefiLlama, the current stablecoin market capitalization is $258 billion. The market has risen 58% from July 16, 2024, when it was valued at $163.3 billion. Some observers consider stablecoins to be crypto’s first mainstream use case, as they have been increasingly adopted by businesses and individuals around the world for their ease, speed and simplicity. JPMorgan deposit coin is a proof-of-concept token issued on a public blockchain. The bank is billing it as an alternative to stablecoins for cash payments and settlements. It is currently available to institutional clients. Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears