TradFi giant JPMorgan Chase is moving ahead with stablecoin-related efforts, even as CEO Jamie Dimon remains unconvinced of their broader appeal.
On the bank’s latest earnings call, according to CNBC, Dimon revealed that JPMorgan plans to be actively involved in stablecoin development as it works to keep up with fintech rivals pushing into digital payments.
“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” said the CEO. Dimon, who is a long-standing critic of the crypto industry, however, reiterated his skepticism of the asset class. While he acknowledged their utility, he questioned the need.
“I think they’re real, but I don’t know why you’d want to [use a] stablecoin as opposed to just payment,” he reportedly added.
The CEO’s comments follow the bank’s filing of a stablecoin-related trademark “JPMD” earlier in June, prompting speculation that the bank may be preparing to launch its own stablecoin. While the digital asset is expected to be exclusive to institutional clients and is not a true stablecoin in the sense of being universally accepted, the increasing efforts signals the bank’s intent to participate more directly in blockchain-based payments.
JPMorgan’s push is not isolated. Other top U.S. banks like Citigroup and Bank of America are reportedly exploring similar initiatives, as competitive pressure and fear of falling behind continue to grow.
Back in May, a Wall Street Journal report revealed that JPMorgan had been involved in private talks with other banks about potentially issuing a joint bank-backed stablecoin. However, further comments have not been made regarding the initiative.
Meanwhile, retail powerhouses Walmart and Amazon are also reportedly weighing the launch of their own dollar-pegged stablecoins. The growing wave of interest comes as the U.S. regulatory landscape shifts, with lawmakers actively working on the GENIUS Act, a bill that could shape the future of stablecoins in the United States.
While the bill recently hit a roadblock from House Republicans, industry optimism remains high that it could usher in clearer regulations for issuance and use, with hopes of bringing the trillion-dollar stablecoin market fully onshore.
