Major banks, such as Citigroup and Bank of America, are increasingly exploring stablecoin initiatives, following JPMorgan’s lead with its JPMD deposit token on the Base blockchain, signaling a broader institutional shift toward blockchain-based finance.

Citigroup is actively considering issuing its own stablecoin and tokenized deposits, while Bank of America is in early discussions for a joint stablecoin project, reflecting the growing recognition of stablecoins’ potential for faster and more transparent payments.

Standard Chartered’s move into BTC/ETH spot trading further underscores traditional finance’s growing embrace of digital assets as a means to stay competitive with fintechs.

These developments are likely to reshape the market structure by integrating stablecoins into traditional banking, potentially increasing liquidity and transaction efficiency; however, regulatory clarity remains critical.

The GENIUS Act, advancing in the U.S., aims to provide a framework for USD-backed stablecoins, which could legitimize institutional adoption but faces hurdles in the House.

The balance between Web3’s agility and banking’s trust will hinge on how banks leverage their regulatory compliance and infrastructure to compete with decentralized platforms, with stablecoins potentially bridging the two ecosystems if regulatory momentum continues.

Ryan Lee, Chief Analyst at Bitget Research

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