JPMorgan Chase and Citigroup are now set to join the stablecoin market, having previously shied away from joining due to regulatory unpredictability. JPMorgan CEO Jamie Dimon addressed the topic during the bank’s quarterly earnings call that was held on Tuesday morning.
He explained that even if a person questions the actual need for stablecoins, JPMorgan can’t simply sit idly by anymore. JPMorgan already develops a digital payment product based on blockchain, the JPMorgan deposit coin, but only for institutional customers.
It is a service that assists the customers of the largest financial service giant to cross borders more successfully. Jamie Dimon emphasized that the bank must be competitive because fintech companies are bringing more speedy and cheaper solutions than banks’ traditional systems.
They are actively engaged with digital wallets, mobile apps for payment, and cryptocurrency integration to offer new forms of financial services. JPMorgan processes near a ten-trillion-dollar level of worldwide payments each day, which imposes a requirement for continuous innovation on the bank.
Although Dimon is well known for his Bitcoin criticism, he concurred that the market is shifting towards blockchain-based financial infrastructure solutions.
He believes that studying and experimenting with stablecoins internally assists JPMorgan in keeping digital payment futures under its control.
Citigroup plans Citi Stablecoin, eyes tokenized assets
Citigroup representatives also stated that they are planning for the possible introduction of their own stablecoin named Citi Coin some day. They showed interest in creating services for tokenized deposits and digital asset custody for institutional and retail clients.
Blockchain networks offer faster settlements, lower costs, and greater transparency than traditional systems like ACH or SWIFT. They provide a more efficient alternative for moving funds.
Citigroup aims to explore digital infrastructure to catch up on growing customer demand and market demand for simplifying money movement. During that time, Bank of America CEO Brian Moynihan expressed interest in entering the stablecoin market. He indicated a willingness to explore opportunities in that space.
Banks may work together through Early Warning Services to create a shared platform. This new system would resemble the existing Zelle platform.
Big banks originally launched Zelle to rival major fintech firms like PayPal. It was also meant to compete with peer-to-peer payment services offered by Block. Jamie Dimon declined to comment on discussions about a joint stablecoin project. However, he hinted that internal talks are actively taking place.
Traditional banks now understand they need to adapt quickly. Staying competitive in the fast-evolving financial technology space requires immediate action.
