Big Banks Join Forces on Stablecoin, Says WSJ Report

Other than price moments, volatility and others something big is happening behind the curtains, as per a most recent news article of the Wall Street Journal big banks are reportedly in talks to issue a joint stablecoin.

It is worth noting that to date, companies involved in the talks are likely to be owned by big names such as JP Morgan Chase, Bank of America, Citigroup, including Wells Fargo.

Citing people familiar to the matter, WSJ said that other than these banks a few other commercial large scale banks are involved in the process.

Nevertheless the talk of stablecoin issuance is still in early phase yet the final decision over the same will be based on regulatory environment and adoption rate of the stablecoins.

On May 20, the US Senate passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which regulates stablecoins, 66-32

This bill requires adherence to anti-money laundering regulations and provides a legislative framework for collateralizing stablecoins. There will now be a Senate floor discussion on the measure

Stablecoins are becoming the base of an evolving financial ecosystem

Over time, stablecoins have continued to prove their relevance and especially in cross-border payments and other similar methods. Nowadays, USDT is one of the most popular stablecoins, which is also one of the most traded stablecoins and cryptocurrencies in the market.

Experts argue that the concept of development of the Central Bank Digital Currency has also been mimicked by the functioning of stablecoins, yet the feature of decentralization makes them different from CBDC.

Per the archive data in between 2016 to 2017, the stablecoin market cap was below $5 billion, a significant boost has been observed after the completion of 2017

Also the global pandemic has helped stablecoins to reach broader masses, in 2020 the market cap was recorded at $20 billion followed by $130 billion in 2021.

When writing, the stablecoins market was $249,701,276,995 which grew by more than 10% in the past few months. At the same time the trading volume of all stablecoins was $143,145,531,258 which is down by 23.37% in intraday time frame.

Both in terms of volume and market cap USDT stands firms followed by USDC, DAI, Ethena USDe, World Liberty Finance USD, First Digital USD and PayPal USD.

A quick brief of crypto market prices

When writing, the crypto market was at $3.53 trillion with a surge of 0.89% in the past 24 hours, and the crypto fear and greed index has continued to move towards higher numbers, now at 76, indicating the surging greed in the market.

Bitcoin is currently trading at $110,968 with an intraday addition of 0.14% and in the last 7 days it added 6.99%.

According to data from CoinMarketCap, the intraday gainers list has been topped by Worldcoin followed by Hyperliquid, Jupiter, Four, ZCash and Bonk.