Wall Street Giants JPMorgan, BoA and Citi Eye Stablecoins

As crypto markets keep a close eye on Capitol Hill for movement on the GENIUS bill, legacy financial institutions are already laying the groundwork for a future where stablecoin payment rails handle trillions of dollars in client transactions.

Once a niche tool used primarily by crypto traders to fund exchange accounts, stablecoins have evolved into one of the industry’s most compelling use cases. Major players like JPMorgan, Citigroup and Bank of America are now competing for a share of this growing market.

This week’s Crypto Biz newsletter dives into Wall Street’s accelerating push into stablecoins, highlights an emerging stablecoin network aiming to challenge Tether and Circle, and puts the S&P 500’s latest record high into perspective — by measuring its performance against Bitcoin (BTC).

JPMorgan, Citigroup, BoA consider stablecoins

Wall Street kicked off earnings season this week, and while revenue and profit remained in focus, several major banks made headlines for something else: their growing interest in stablecoins.

During JPMorgan’s earnings call, CEO Jamie Dimon told shareholders that the bank plans “to be involved in […] stablecoins,” citing the need to stay ahead of the competition.

Just a day earlier, Citigroup signaled similar intentions. CEO Jane Fraser announced that the bank is “looking at the issuance of a Citi stablecoin,” marking a clear step into the digital asset space.

Perhaps the most comprehensive deep dive so far has come from Bank of America. The bank has been exploring fiat-pegged tokens throughout 2025, and during its second-quarter earnings call, CEO Brian Moynihan confirmed that stablecoins are under serious consideration as a way to modernize the bank’s payment infrastructure.

Moynihan noted that stablecoins could eventually support the movement of trillions of dollars in client assets each day.

OKX joins Paxos’ stablecoin network

Crypto exchange OKX has joined Paxos’ Global Dollar Network consortium, potentially exposing its 60 million global users to the USDG (USDG) stablecoin.

OKX, which already supports major stablecoins like USDt (USDT) and USDC (USDC), has now enabled USDG for trading and transfers, the company announced.

Launched last year, USDG takes a regulation-first approach, having registered with the Monetary Authority of Singapore and the EU’s Markets in Crypto-Assets (MiCA) framework. The token’s reserves are held in Singapore’s DBS Bank. 

While USDG still trails far behind its larger rivals in terms of market share, its circulating supply has grown rapidly over the past year, reaching $350 million. 

S&P 500 returns to record highs, but there’s a catch

The S&P 500 Index has mounted a strong V-shaped recovery since US President Donald Trump’s tariff-driven market turmoil in early April, hitting a new all-time high last week. But the picture looks very different when measured in Bitcoin.

Despite notching year-to-date gains of over 6%, the S&P 500 is down a staggering 15% against Bitcoin, according to market commentator The Kobeissi Letter.

Even more striking is Bitcoin’s long-term dominance. Since 2012, the S&P 500 has lost a staggering 99.98% of its value when priced in Bitcoin.

Bitcoin continues to be the fastest horse in the race, surging past $123,000 this week amid booming ETF demand and growing speculation about a major policy tailwind from Washington.

California taps crypto firms for advice on government efficiency

The State of California has launched the Breakthrough Project — a new initiative aimed at streamlining government operations and enhancing public services — with help from top executives in the crypto and tech sectors.

Leaders from Ripple, Coinbase, MoonPay and other companies have joined the effort, which held its inaugural meeting last month at Ripple’s San Francisco headquarters.

The project was unveiled by California Governor Gavin Newsom, who said: “As the birthplace of modern tech, our state is uniquely positioned to bring the best and the brightest together to advance our work.”

Through the Breakthrough Project, California aims to foster closer collaboration between lawmakers and industry leaders to drive innovation across public services and digital infrastructure.

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