The Breakdown The Big Bank Stablecoin Consortium
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May 29, 2025 Major U.S. banks are teaming up to create a joint stablecoin, marking a significant shift in crypto adoption. As they navigate this new frontier, political backlash is growing, complicating legislation surrounding stablecoins. The discussion also touches on Bitcoin's market performance and the potential for banks to establish their own stablecoin systems. Controversies surrounding Trump's meme coin further complicate matters, highlighting the intricate relationship between politics and crypto regulation.
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Banks Form Stablecoin Consortium
- America's largest banks plan a consortium to issue a joint stablecoin as an extension of existing payment infrastructure.
- This bank-backed stablecoin could create a unified, real-time settlement system outside current crypto networks.
Stablecoins Could Reshape Banking
- Stablecoins backed fully by US Treasury bills could redefine the US banking system toward narrow banking.
- Stablecoins may become a mainstream safe haven, reducing exposure to bank runs for individuals and companies.
Stablecoins to Boost Treasury Demand
- Stablecoin legislation is expected to massively increase demand for US Treasuries, potentially creating trillions in new demand.
- Tether’s $33 billion US debt purchases in 2023 rank it as a top buyer, showing stablecoins' power in debt markets.