Banks are reportedly hedging against the possibility that stablecoins could become widely adopted under President Trump, who dubbed himself the ‘Crypto President’.

Representative image of dollar-backed stablecoin. (Photo by Manuel Augusto Moreno/Getty Images)

Prabhjote Gill·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

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The biggest banks in the U.S., which include JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC), are reportedly teaming up to decide whether or not to issue a joint stablecoin.

According to The Wall Street Journal report, the bank consortium discussions are in the early conceptual stages and could change. Any final decision would depend on the fate of legislative actions around stablecoins and other factors, such as whether the bank finds there would be enough demand for them.

Banks are reportedly hedging against the possibility that stablecoins could become widely adopted under U.S. President Donald Trump, who dubbed himself the ‘Crypto President’. They are concerned that widespread stablecoin adoption could erode their share of customer deposits and payment flows, especially if major technology firms or retailers move aggressively into the sector.

In January, Trump signed an executive order pledging to defend the U.S. dollar, “including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”

The same order halted further work on a central bank digital currency (CBDC), effectively blocking a government-run alternative many banks viewed as a potential threat.

Stablecoins function as digital dollars, facilitating crypto transactions and offering a mechanism for storing dollar-equivalent value. These tokens are typically backed one-to-one by reserves such as cash or short-term U.S. Treasuries.

Tether (USDT) and Circle’s USDC are currently the two largest U.S. dollar-pegged stablecoins.

Tether has a market capitalization of $152 billion, while USDC’s stands at $61 billion—up nearly 39% since the start of 2025. More than half of USDT’s supply, over $75 billion, is issued on the Tron (TRON) blockchain, with the rest distributed across platforms such as Ethereum (ETH).

Wells Fargo’s stock dipped 1.1% in morning trade on Friday. JPMorgan’s stock

and Bank of America shares edged 0.7% lower, while Citigroup’s stock fell 0.9%.

Wells Fargo and Citigroup stocks have gained 2.8% this year, while JPMorgan’s stock is up 7%. Meanwhile, Bank of America’s stock has fallen 2.7% in 2025.

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