Wall Street Eyes Stablecoins as JPMorgan and Citigroup Signal Crypto Expansion

Jamie Dimon of JPMorgan Chase (JPM) and Jane Fraser, CEO of Citigroup (C), announced Tuesday their growing interest in stablecoins, signaling a deeper shift by Wall Street into the digital assets space as lawmakers continue to debate pivotal crypto legislation.

Fraser revealed that Citigroup is actively exploring the launch of a proprietary stablecoin, emphasizing the bank’s readiness to expand in the digital finance arena. “We’re encouraged by the government’s efforts to create a regulatory path for banks to participate in the crypto ecosystem,” Fraser told analysts.

Meanwhile, progress on crypto-related legislation—coined “Crypto Week” by some GOP members—stalled temporarily as 13 Republicans sided with Democrats to delay a procedural step that would have opened the floor to votes on three significant bills. These measures aim to regulate digital assets broadly, block the development of a central bank digital currency (CBDC), and establish clear rules for stablecoin issuance.

According to Politico, the GOP dissent stems from a desire to consolidate the bills into a single package rather than vote on them individually. However, former President Trump later announced on social media that those who opposed the motion have agreed to support it, potentially allowing the bills to advance.

In anticipation of legislative clarity, major financial institutions are positioning themselves to adopt stablecoins. Dimon, traditionally cautious toward cryptocurrencies, confirmed that JPMorgan is expanding its involvement with digital payment solutions. Last month, the bank unveiled plans for JPMD, a deposit token for institutional clients, functioning similarly to a stablecoin but with a restricted scope.

“We’re diving into both our JPMorgan deposit token and stablecoins to better understand and leverage these tools,” said Dimon, although he admitted he’s still unsure why consumers would favor stablecoins over conventional payment methods.

Bank of America (BAC) CEO Brian Moynihan has also indicated interest in stablecoins but stated that regulatory uncertainty had been a major barrier. “We’ve done the groundwork and collaborated with industry peers,” he said. “But the lack of clear permissions under banking laws made progress difficult.”

The Senate-passed stablecoin legislation sets guidelines for issuing and managing dollar-backed digital tokens, a move likely to accelerate mainstream use. It includes provisions to prevent members of Congress and their families from profiting off stablecoin ventures—although Trump and his family are not subject to the same restriction, a point of contention among some Democrats.

As regulatory clarity improves, Wall Street’s largest banks appear ready to fully integrate stablecoins into their financial infrastructure, aligning with broader shifts in the global payments landscape.