Big banks execs lay out stablecoin ambitions in Q2 earnings calls

Some of the U.S.’s biggest banks are working on ways to capitalize on the growing interest in stablecoins, according to several second-quarter post-earnings calls, as new legislation opens the door for digital assets to become more embedded in the traditional financial system.

Stablecoins are digital tokens pegged to “stable” assets like the U.S. dollar, and they have seen growing adoption as financial institutions look for faster, more efficient ways to move money and settle trades.

A number of high-profile chief executives laid out this week how they plan on getting involved, as the big banks kicked off Q2 earnings season.

Jamie Dimon, CEO of the U.S.’s largest bank, JPMorgan Chase (NYSE:JPM), assured the lender will engage with stablecoins “to understand it, to be good at it,” despite his skepticism toward bitcoin (BTC-USD).

Earlier this year, JPMorgan (NYSE:JPM) revealed it would test its own deposit token, JPMD, on Base — a public blockchain tied to crypto exchange Coinbase Global (COIN).

Meanwhile, Bank of America (NYSE:BAC) is in the process of developing a stablecoin, CEO Brian Moynihan said. While current client interest is limited, he added, BofA has already done significant groundwork and expects to move ahead when the timing and demand make sense — likely in partnership with other firms.

“We’re still trying to figure out how big or small it is because in some of the places, there are not big amounts of money movement. So you’d expect us all to move, you expect our company to move on that,” he said.

With U.S. President Donald Trump’s crypto-friendly approach and a landmark stablecoin bill already signed into law, banks see an opening to enter the space under clearer legal guardrails. The proposed legislation — the GENIUS Act — creates a formal framework for stablecoins, offering the regulatory certainty institutions have long demanded before moving forward.

Two other crypto measures remain in the offing: the Clarity for Payment Stablecoins and Digital Asset Market Structure Act, which has passed the House and is awaiting Senate review, and the Anti-CBDC Surveillance State Act, which also passed the House.

“We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,” Citigroup (NYSE:C) CEO Jane Fraser said. “Up until now, it has been hard for us to participate in a level playing field.”

Her remarks come as Citigroup (NYSE:C) is exploring the launch of a stablecoin, as well as concentrating on tokenized deposit solutions and crypto custody.

Elsewhere, Morgan Stanley (NYSE:MS) Chief Financial Officer Sharon Yeshaya said it’s “a little early to tell” how big of an opportunity stablecoins could be, “especially for the businesses that we run versus businesses that you might see from competitors on how stablecoin would necessarily play in.”

“We’re looking both at the landscape and the uses and the potential uses for our own client base,” she said.

But there is a camp that believes that actual utility won’t meet all the hype. PNC Financial Services (PNC) Chairman and CEO William S. Demchack said: “I think despite a lot of the hype, there isn’t really a cost advantage or a driving need to use stablecoin at least in domestic commerce.”

In May, the Wall Street Journal reported that top U.S. banks were looking into potentially teaming up to issue a joint stablecoin.