Circle Internet Group’s stock fell 4% on Wednesday after a Wall Street Journal report indicated that banks are considering issuing their own stablecoins, a shift from prior opposition to the digital assets.
The decline in Circle’s shares reflects growing competition in the stablecoin market, historically dominated by issuers such as Circle and Tether. Major nonbank companies, including Visa, BlackRock, Google and DoorDash, have also entered the sector in recent months.
JPMorgan Chase, which already operates a tokenized deposit system called JPM Coin on its blockchain, has evaluated the possibility of launching a stablecoin, according to people familiar with the matter cited by the WSJ. A JPMorgan spokeswoman reiterated that the bank has no current plans to issue a stablecoin but would assess opportunities based on regulatory developments and customer demand.
A group of more than a dozen financial institutions, including Bank of America, Wells Fargo and Santander, has been advancing a cross-border stablecoin initiative. The move contrasts with the banking industry’s past lobbying efforts against crypto firms offering stablecoins that could function like bank deposits.
Banks have instead focused on developing tokenized deposit systems, though some executives have expressed concerns that stablecoins could compete with traditional banking services. The shift toward stablecoin exploration underscores the evolving landscape in digital payments and the growing role of blockchain-based financial instruments.
