JPMorgan Chase, Bank of America, Wells Fargo and Citigroup are exploring the creation of a jointly operated, fully fiat-backed stablecoin, marking a significant shift from skepticism to strategic investment in crypto by traditional finance. The proposed consortium is reportedly considering using existing rails like Early Warning Services (operator of Zelle) and The Clearing House to develop a new kind of stablecoin infrastructure — one built by regulated entities from the ground up. Their idea? To issue a token that could eventually be used for everything from peer-to-peer payments to B2B settlements, all potentially under the watchful eye of federal regulators. Because the U.S. stablecoin landscape has not yet found shelter under a clear regulatory framework, the banks are still in the exploratory phase, with a shared commitment to finding a model that’s compliant, scalable and secure. Their proposed stablecoin would be fully backed by fiat held at the banks and function similarly to other stablecoins, but with a key differentiator: trust in institutional governance. This vision is a clear departure from the early crypto ethos of disrupting incumbents. Instead, it’s a bet that those same incumbents are best positioned to bring digital dollars into the mainstream. creating a stablecoin is one thing. Coordinating among multiple banks — each with its own technology stack, risk appetite and strategic priorities — is another. This kind of collaboration will require a shared governance model, common technical standards and airtight security protocols.That’s why, for banks, the legislative momentum in the U.S. is a prerequisite. Institutions like JPMorgan and BofA are unlikely to risk their core operations on loosely regulated ventures. Instead, they see regulation as a moat, a way to differentiate themselves from crypto-native competitors and legitimize the space.