Major banks that once pushed back against stablecoins are now considering launching their own stablecoins, as crypto companies and major nonbanks accelerate the shift toward blockchain-based payments.

More than a dozen major banks, including Bank of America and Wells Fargo, are working on a global stablecoin initiative for commercial use, while JPMorgan is also evaluating a potential stablecoin alongside its existing JPM Coin.

Banks have traditionally favored tokenized deposits because they represent existing bank deposits onchain and fit more easily into the current regulatory framework. Stablecoins, meanwhile, can move across public blockchains such as Ethereum and Solana.

The shift reflects growing concerns that stablecoins could eventually pull deposits and payment activity away from traditional banks, especially as firms like Visa, BlackRock and Google expand into the sector.

The stablecoin race is increasingly becoming a competition between crypto-native issuers and traditional financial institutions, with banks now moving from resistance to participation.

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