Stablecoins gain traction as JPMorgan joins the race

The financial sector is undergoing a shift as digital assets begin to reshape long-standing systems. Among the most closely watched developments is the growing interest in stablecoins. JPMorgan Chase (JPM) CEO Jamie Dimon has stated that the bank will be getting involved in stablecoins, further confirming that Wall Street is shifting its stance to embrace digital assets.

JPMorgan’s cautious entry into stablecoins

On Tuesday, Dimon stated that JPMorgan cannot afford to ignore stablecoins. Nevertheless, he remained unconvinced of their advantages and questioned whether they provide meaningful improvements over traditional financial transactions.

Despite his doubts, he described fintech firms as highly capable players who are already moving into areas long dominated by banks, such as opening accounts, processing payments, and offering rewards programs. Dimon warned that traditional banks must take this rising competition seriously. According to him, the best approach is to actively participate rather than sit on the sidelines. He said,

You know, these guys are very smart. They’re trying to figure out a way to create bank accounts, to get into payment systems and rewards programs, and we have to be cognizant of that. And the way to be cognizant is to be involved.

JPMorgan shared plans last month to launch a new stablecoin called JPMD, which will be limited to use by its institutional clients. The digital token won’t be offered to the wider public. The bank said it envisions JPMD being used for on-chain settlement of digital assets as well as for cross-border business-to-business payments.

The CEO explained that the bank plans to engage with both JPMorgan’s deposit coin and broader stablecoins to understand them and excel in their use. He acknowledged their legitimacy but questioned the need for stablecoins when traditional payment systems already exist.

We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it, I think they’re real, but I don’t know why you’d want to [use a] stablecoin as opposed to just payment.

JPMorgan Chase (JPM) CEO Jamie Dimon

Fintech competition spurs banks to act

The CEO has often criticized cryptocurrencies like Bitcoin. However, he may be softening his stance as regulations around digital assets become clearer, and the bank recognizes that stablecoins have become too important to ignore.

Dimon also warned that if banks like JPMorgan fail to get involved in this space, they risk falling behind. Fintech firms are now attempting to replicate core functions of traditional finance, and they could succeed if big banks do not keep pace.

Joining the stablecoin push, Citigroup announced on Tuesday that it is exploring the launch of a Citi stablecoin. The firm sees its biggest opportunities in tokenized deposits and crypto asset custody.

Legislative momentum: the GENIUS Act advances

On the regulatory front, momentum behind the GENIUS bill picked up again after a narrow House vote on Wednesday moved it forward. The legislation, which sets out rules for stablecoins and crypto market infrastructure, had initially stumbled on Tuesday when a procedural vote failed 196 to 223.

This setback led to a rapid response from President Donald Trump, who met with 11 of the 12 lawmakers whose support was needed. Trump shared on Truth Social that the meeting took place in the Oval Office and that all 11 agreed to back the bill the following day.

The meeting appeared to have a decisive effect. On Wednesday, July 16, after intense debate and resistance from some members, lawmakers voted to pass three key crypto bills, including the GENIUS Act. The legislation is now expected to be sent to President Trump for approval by the end of the week.