Leading U.S. banks are negotiating early to launch a common Stablecoin business, while Stablecoin from the Trump family has quickly highlighted, highlighting the growing role of blockchain in reshaping digital payments and raising ethical issues.
Stablecoin project backed by top U.S. banks
Major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, are exploring a collaborative Stablecoin initiative to compete for the $245 billion Stablecoin market currently led by Circle’s USDC and Tether’s USDT.
Source: Defillama
according to Wall Street JournalThese discussions involve payment companies, such as early warning services (operators of Zelle) and clearinghouses jointly owned by banks. The move is designed to cope with the growing impact of digital payments based on cryptocurrencies, which threatens traditional banks’ deposit bases and transaction volumes.
USD pegged Stablecoins offers fast, low-cost cross-border transfers, making it attractive to global finance. Fireblocks survey points out that 58% of traditional banks have used Stablecoins to make such payments to reflect institutional adoption.
Source: Fireblocks
The bank’s consortium model can enable wider participation of other financial institutions, thereby increasing stable coverage. However, the progress of the joint venture depends on the U.S. stability law, especially the Genius Act, which recently cleared the Senate procedural vote with bipartisan support. The bill requires that stable stabilizers must be supported by liquid reserves 1:1 to address regulatory issues such as anti-money laundering and consumer protection.
World Free Financial Fuel Growth and Debate by USD1 Stablecoin
Meanwhile, the Trump family’s World Liberty Financial launched USD1, a one-dollar-backed Stablecoin that quickly gained traction. Bitgo Trust is issued under U.S. regulatory compliance, and USD1 has soared to a market value of $2.14 billion, second only to USDT among the second largest stable stocks in the BNB chain.
A $2 billion investment from Abu Dhabi’s MGX Fund to acquire a stake in Binance using USD1, highlights its global appeal. The Trump family owns 60% of the world’s free finances, which has attracted moral concerns about potential conflicts of interest, especially given President Trump’s crypto-friendly policies.
Learn more: World Free Finance Launch Stablecoin USD1
Critics, including Senator Elizabeth Warren, argue that UAE, such as the UAE, have fueled the rise of USD1, risking corruption, especially as the Genius Act has developed. The integration of Stablecoin with ChainLink for multi-chain transfer further enhances its utility, but concerns about transparency and regulatory oversight.
The U.S. aims to dominate the cryptocurrency sector, responding to President Trump’s remarks at Trump token holders’ activities, where he compared cryptocurrency leadership to the U.S.’s global economic advantage through the dollar. The rise of the bank’s Stablecoin Venture and USD1 reflects this ambition, positioning the United States to shape the future of digital financing. By leveraging the efficiency of blockchain, banks aim to modernize payments, and the rapid growth of USD1 marks the mainstream potential of Crypto.
But critics compare stablecoins to volatile money market funds, challenges such as regulatory clarity, public trust and financial stability risks may hinder progress. Both initiatives highlight the transformative power of blockchain, but their success depends on the cause of ethical problems and regulatory barriers.
