The proposed model would allow not only the consortium members but also unaffiliated banks to use the stablecoin, potentially expanding its adoption across the financial sector. The discussions reportedly involve companies tied to The Clearing House and Early Warning Services, organisations that facilitate banking infrastructure and payments.
Stablecoins are digital tokens typically pegged to a traditional currency, such as the USD. They are widely used in cryptocurrency markets to facilitate transactions and transfer value between assets without exposing users to the volatility of traditional cryptocurrencies.
Smaller banks consider alternative paths
In parallel to the consortium proposal involving the largest institutions, some regional and community banks have reportedly considered establishing a separate collaborative stablecoin effort.
The idea of a shared digital currency among banks comes in the context of a re-evaluation of digital assets’ role in the US financial system. Public officials have also weighed in on the matter. In recent remarks, a prominent political figure cited by Reuters pledged to support cryptocurrency more broadly, arguing that digital assets could enhance the banking infrastructure and reinforce the USD’s international role.
The US Senate has recently advanced new legislation on stablecoin regulation. On 20 May 2025, the Senate voted 66–32 in favour of advancing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill sets out requirements for collateralization and includes anti-money laundering measures.
The proposal moved forward following renewed negotiations over the weekend that produced a revised draft. While over a dozen Senate Democrats supported the bill, leadership within the party, including senior figures, remained opposed and voted against the motion to proceed. The updated version of the legislation was enough to gain the backing of some Democratic lawmakers who had previously resisted the measure.
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