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US banks pivot from fighting stablecoins to issuing their own

A consortium including Bank of America, Wells Fargo and Santander, a possible JPMorgan token, and a BankChain Alliance of 39 state associations: in one week, US banks laid out their answer to the GENIUS Act, which takes full effect in January 2027.

Networks mentioned

US banks that fought privately issued stablecoins are now preparing their own. Three separate announcements in the last week of August 2026 point the same way: a multibank stablecoin consortium, a possible token at JPMorgan, and a blockchain network backed by 39 state banking associations. The common trigger is the GENIUS Act, which takes full effect in January 2027.

More than a dozen institutions, including Bank of America, Wells Fargo and Santander, are advancing a joint stablecoin, The Wall Street Journal reported. The group would start with a US dollar token and could later add the euro and other G7 currencies. The target uses are corporate: treasury management, cross-border settlement, and programmable payments.

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The consortium is still a plan
The banks have not disclosed the project’s full membership, governance model, backing arrangements or timetable. The report relies on people familiar with the discussions and describes an intention, not a final decision.

JPMorgan weighs a stablecoin alongside JPM Coin

JPMorgan has also discussed issuing a stablecoin. Publicly, it says it has no plans to issue one, and a spokeswoman said the bank could review its options as client demand and regulation evolve. JPMorgan already runs JPM Coin, which belongs to a different category of instrument and would sit alongside any new token.

Tokenized depositPayment stablecoin
What it isA deposit on a bank’s balance sheet, in token formA liability of an issuer, backed by reserve assets
Where it movesBetween customers of one bank, or within a closed group of banksBetween wallets, apps and blockchains, with no prior relationship
US frameworkExisting banking lawGENIUS Act, permitted issuer status
Interest to the holderThe underlying deposit can pay interestProhibited
Two similar instruments under two different regimes

The difference is reach. A tokenized deposit stays tied to money held at a specific bank, and it can only travel as far as the circle of institutions that accept it. A stablecoin moves across wallets, apps, exchanges and blockchains, whether or not the two parties share a bank. A bank that weighs both is serving two separate needs: settlement among members, and open circulation.

State associations form the BankChain Alliance

On August 25, 2026, 39 state banking associations announced the BankChain Alliance, an industry-owned blockchain network for tokenized deposits, bank-issued stablecoins and programmable payments. It is targeting a 2027 launch.

Kathy Kraninger, CEO of the Florida Bankers Association and former director of the Consumer Financial Protection Bureau, is interim chair. The alliance has not yet chosen a technology partner, a decision that will largely determine how well the network connects with existing blockchains. It plans to invite banks across the country to take ownership stakes.

39
state banking associations founding the BankChain Alliance
CoinDesk, August 25, 2026
3,283
banks represented by those associations
CoinDesk, August 25, 2026
$21.8T
combined assets of the banks represented
CoinDesk, August 25, 2026
2027
target launch year for the network
BankChain Alliance, August 2026
Screen displaying financial data
Both projects share one goal: keeping payment flows, and the collateral behind them, inside the banking system.

The GENIUS Act sets the timetable

The timing is no coincidence. The GENIUS Act restricts payment stablecoin issuance to permitted payment stablecoin issuers and bans paying interest to holders. The law takes full effect in January 2027.

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No yield shifts the contest to utility
A payment stablecoin cannot pay interest to its holder. Competition with bank deposits therefore moves to utility: settlement speed, round-the-clock availability, and programmable payment terms.

What banks want to prevent is deposit flight. A company that moves its operating cash into a third-party token drains funding from the bank’s balance sheet and takes away the payment flows that feed the bank’s other revenue. Both projects aim to keep those flows, and the collateral behind them, inside the regulated system.

Invoices and accounting documents on a desk
The consortium is targeting corporate uses: treasury management, cross-border settlement, and programmable payments.

Card networks pitch themselves as the plumbing

The card networks, meanwhile, are positioning themselves as infrastructure providers. On August 26, 2026, South Korea’s Shinhan Financial Group signed an agreement with Visa to test stablecoin issuance, transfer and redemption on the network’s platform, and to design a business model for the Korean market. The partners plan to trial stablecoins in card payment settlement as well as in B2B and B2C payments.

For banks, the open question is no longer permission, which the GENIUS Act settled, or technology, which several vendors already sell. It is distribution: who controls the wallet that holds the token, and which app initiates the payment. A stablecoin issued by a bank consortium but held in a nonbank app does not bring deposits back onto its issuers’ balance sheets.

Provenance

Published August 29, 2026

5 sources, 4 distinct domains

↗ crypto.news, “Banks weigh stablecoins as payments competition grows: WSJ,” August 27, 2026 · crypto.news↗ Yahoo Finance/Bloomberg, “JPMorgan Weighs Stablecoin as Bank Push Accelerates,” August 2026 · finance.yahoo.com↗ Yahoo Finance, “39 State Banking Associations Are Building Their Own Blockchain,” August 26, 2026 · finance.yahoo.com↗ Shopifreaks, “39 state bankers associations form BankChain Alliance to build a bank-owned network for tokenized deposits and stablecoins,” August 26, 2026 · shopifreaks.com↗ The Block, “South Korea’s Shinhan to use Visa’s stablecoin platform for future finance initiatives,” August 26, 2026 · theblock.co
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