Circle, Coinbase Stocks Slide As US Banks Step Up Stablecoin Push Ahead Of CLARITY Act

• BankChain Alliance plans to build a bank-owned blockchain network in 2027 with over 3,000 institutions and over $21.8 trillion in assets.
• The network would be compatible with other blockchain networks while supporting tokenized deposits, stablecoins, automated settlement, and other digital banking services.
• The consortium has been discussing the launch of a stablecoin backed by the US dollar, the euro, and other currencies.

Shares of Coinbase (COIN) and Circle (CRCL) edged lower on Wednesday after JPMorgan Chase and a consortium of big banks reportedly moved closer to exploring their own stablecoins, sparking fears that traditional lenders could increasingly compete with crypto-native issuers such as Circle and Tether.

According to The Wall Street Journal report, U.S. banks are warming to stablecoins as major nonbank companies move into the market and executives worry the tokens could encroach on traditional banking. JPMorgan Chase has explored a potential stablecoin, though discussions remain preliminary and no product is under development.

Meanwhile, a consortium of more than a dozen banks, including Bank of America (BOFA), Wells Fargo (WFC), and Santander (SAN), is advancing plans for a commercial-focused stablecoin. 

The shift comes as banks that once favored tokenized deposits increasingly consider whether they need both digital representations of bank money and stablecoins as the payments landscape evolves.

Modeled On Home Loan Banks

According to The Wall Street Journal, the organizations, based on the Federal Home Loan Bank, constitute about 3,283 institutions and $21.8 trillion in assets. The platform, which is anticipated to emerge in the first half of 2027, will be used for treasury management, supply chain financing and cash management, and will enable tokenized deposits and stablecoins. 

Large banks discussed a commercial-focused stablecoin to cover the dollar, then the euro, and finally other Group of Seven currencies.

Launch Bank-Owned Blockchain In 2027

The BankChain Alliance also announced the formation of an industry-owned and industry-governed blockchain network that would enable banks of all sizes to build modern payment rails.

The groups said that the network would allow the banks that are part of it to offer new banking services while still complying with safety and regulatory rules, such as smart payment tools, tokenized deposits, stablecoins, and automated settlement. 

The Alliance said that it was looking for a technological partner and planned to debut in 2027. The network would be interoperable with other networks and open to ownership by banks nationwide.

"This is about banks of all sizes building their own future," said Kathy Kraninger, interim chair of the BankChain Alliance and president and CEO of the Florida Bankers Association. She said the collaboration would let institutions "continue serving customers safely and efficiently in rural, urban and regional communities across the country."

Comes Amid CLARITY Uncertainty

The announcement comes as the Digital Asset Market Clarity Act (CLARITY Act) has yet to pass the Senate, with the bill’s treatment of stablecoin yield among the remaining issues to be ironed out. 

Market strategist at Futurum Equities, Shay Boloor, said this has put the Circle stock “under pressure.” The reason, Boloor said, was “The concern is that if major banks issue and distribute their own dollar stablecoin at scale, it could reduce how much of the market ultimately flows through Circle and USDC.”

CRCL stock was down over 3% in midday trade. On Stocktwits, retail sentiment around CRCL dropped to the ‘bullish’ zone from the ‘extremely bullish’ zone, as chatter stayed at ‘high’ levels over the past day.

COIN stock was also down over 3% in midday trade. On Stocktwits, retail sentiment around COIN remained in the ‘extremely bullish’ zone, while chatter stayed at ‘high’ levels over the past day.

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