According to Fixygen, U.S. banks—which until recently were warning about the threat stablecoins pose to the deposit system—are now exploring the possibility of issuing digital dollars themselves.
JPMorgan views a stablecoin as a complement to its existing JPM Coin tokenized bank deposit system, according to the Wall Street Journal.
At the same time, more than a dozen banks are discussing a shared infrastructure for issuing digital currencies. Bank of America and Wells Fargo are among the participants.
The reason is simple: if a portion of payments and corporate settlements shifts to USDT, USDC, and other blockchain-based instruments, traditional banks risk losing a portion of their deposits and fee-based business.
Therefore, they are trying to offer their own alternative.
In fact, three competing models are currently taking shape: private stablecoins such as USDT and USDC, bank-issued stablecoins and tokenized deposits, as well as future central bank digital currencies.
The winner of this race could capture a significant share of the new market for round-the-clock international payments and settlements involving tokenized assets.
