The largest U.S. bank, JPMorgan, plans to further expand its presence in the crypto industry by venturing into stablecoins. The bank’s CEO, Jamie Dimon, confirmed this development, going head-to-head with the likes of Tether, Circle, and Ripple.
JPMorgan CEO Confirms Plans To Venture Into Stablecoins
According to a CNBC report, Jamie Dimon has confirmed that his bank will expand into the stablecoin industry. He made this revelation when asked about plans to explore this payment option during an earnings conference today.
This comes despite his criticism of Bitcoin and the crypto industry in general. As CoinGape reported, JPMorgan has already launched the JPMD coin, which it plans to pilot on the Base network.
The stablecoin-like token will be dominated in U.S. dollars and will provide the bank’s customers a faster way to transact. However, it remains unknown if the bank plans to make the coin available to the general public in the future.
The JPMorgan CEO simply said that they will be involved in both the bank’s deposit coin and stablecoins to “understand it” and to be good at it. He added that he thinks these stablecoins are real, but he doesn’t know why one would want to use them as opposed to just payment.
Dimon admitted that they have no choice but to venture into this space, unless they want to lose ground to the likes of Tether, Circle, and Ripple, who are looking to replace these banks. As CoinGape reported, Circle and Ripple have already applied for a national banking license.
Commenting on the competition from these crypto firms, the CEO said,
You know, these guys are very smart. They’re trying to figure out a way to create bank accounts, to get into payment systems and rewards programs, and we have to be cognizant of that. And the way to be cognizant is to be involved.
Other Banking Giants Also Considering Joining Stablecoin
Besides JP Morgan, Bank of America, and Citigroup, which are also members of the ‘big four’ banks in the U.S., are also considering joining the stablecoin race. BofA’s CEO, Brian Moynihan, has already confirmed that his bank will get involved in stablecoins.
Meanwhile, Citigroup’s executives said that they were looking at the issuance of a Citi stablecoin as one of the ways they plan to venture into the crypto space. The executives added that the biggest opportunity is around tokenized deposits and providing custody for crypto assets.
The move from JPMorgan and these other banks comes at a time when the crypto industry is about to gain regulatory clarity with the crypto bills on the table. The U.S. House will vote on the stablecoin bill, the GENIUS Act, this week.
This regulation will give issuers like Ripple, Circle, and Tether more legitimacy, enabling them to compete with these banking giants. Treasury Secretary Scott Bessent stated that the stablecoin industry could potentially reach a value of $2 trillion at some point, thanks to this bill.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.
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Source: https://coingape.com/jpmorgan-to-rival-tether-circle-and-ripple-in-stablecoin-race/