JPMorgan and Citigroup Explore Entry Into Stablecoin Market

Key Takeaways

• JPMorgan Chase and Citigroup are considering issuing their own stablecoins to compete with fintech companies
• The stablecoin market currently has a $258 billion market cap, up 58% year-over-year
• The GENIUS Act is being considered by US Congress to regulate stablecoins
• Major banks are collaborating to explore issuing a joint stablecoin

Major Banks Enter the Stablecoin Race

JPMorgan Chase, the largest US bank with $3.6 trillion in assets, has announced plans to enter the stablecoin market. CEO Jamie Dimon shared during an earnings call that the bank will “participate in stablecoins” to better understand and adopt the technology.

According to Dimon, this move is partly a response to growing competition from fintech firms seeking to replicate or improve upon traditional financial services.

“We will participate in both JPMorgan deposit coins and stablecoins to understand it better, to do it better,” Dimon stated. “I think they’re real, but I don’t understand why people would want to use stablecoins instead of just using them for payments.”

Citigroup Joins the Game

On the same day as JPMorgan’s announcement, Citigroup revealed similar intentions. CEO Jane Fraser told analysts the bank is actively exploring the issuance of a Citi stablecoin to support digital payment solutions.

“We are looking at issuing a Citi stablecoin, but perhaps most importantly, the tokenized deposit space, which we are very active in,” Fraser emphasized. “This is a good opportunity for us.”

Collaboration Among Major Banks

In May 2025, The Wall Street Journal reported that a consortium of major banks—including JPMorgan, Bank of America, Citigroup, and Wells Fargo—is considering issuing a joint stablecoin. This collaboration underscores traditional finance’s growing interest in blockchain-powered digital currencies.

Favorable Regulatory Environment

One of the biggest drivers of this institutional interest is the improving US regulatory landscape. The GENIUS Act, designed to regulate stablecoins and their issuers, has passed the Senate and is currently under review in the House of Representatives.

President Donald Trump has publicly urged Congress to pass the GENIUS Act during “Crypto Week,” emphasizing that dollar-pegged stablecoins could help strengthen global dollar dominance.

Stablecoin Market Thriving

According to DefiLlama, the current stablecoin market capitalization stands at $258 billion. The market has grown impressively by 58% compared to July 16, 2024, when it was valued at $163.3 billion.

Many observers consider stablecoins to be the first mainstream use case for cryptocurrency, as they are increasingly adopted by businesses and individuals worldwide due to their ease of use, speed, and simplicity.

JPMorgan Deposit Coin – The First Step

JPMorgan Deposit Coin is a proof-of-concept blockchain token issued on a public network. It is being positioned as an institutional alternative to stablecoins for settlements and cash transfers.

Currently, the token is available exclusively to JPMorgan’s institutional clients, marking the bank’s first major step into blockchain integration.