Wall Street's plans for stablecoin, from Goldman to JPMorgan
A few years ago, cryptocurrency was a left-field niche that much of white-collar Wall Street avoided like the plague. Now, banks are racing to catch up. During second-quarter earnings calls, executives at five of the six largest US banks said they've either launched stablecoin products or have plans to do so.
It's on the mind of investors and leaders alike because Congress just passed the GENIUS Act, the first federal law regulating digital currency. If signed by President Trump, it could open the door for traditional banks to issue stablecoin, which is a dollar-linked digital token that can be used to transfer money and make payments.
The fact that leaders like Jamie Dimon and Jane Fraser are talking about it with analysts signals regulators that big banks are ready to embrace the tech — and reassures investors that CEOs are paying attention to potential cash-cow innovations.
Some might say banks have little choice. Stablecoins enable people to transfer money without a bank or a money transfer — threatening a core bank function. As Dimon said on JPMorgan's earnings call: "I don't know why you'd want a stablecoin as opposed to just payment."
BI compiled remarks on stablecoin from the earnings calls of Goldman Sachs, Morgan Stanley, JPMorgan, Bank of America, and Citi this week, including their respective plans around it. From simply "monitoring" the situation to touting the proprietary stablecoin their firm already launched, the responses varied.
Jamie Dimon, JPMorgan
Dimon signaled JPMorgan wants to be involved, but also expressed slight skepticism. The bank launched last month what they call " JPMD," a type of deposit token.
"So, deposit token is effectively the same thing. You're moving money by token, you can pay interest. It's JPMorgan Deposit," he said.
He quickly added that the bank will do both. "We're going to be involved in both JPMorgan Deposit coin and stablecoins to understand it, to be good at it."
"These guys are very smart," he said, referring to the fintech creators. "They're trying to figure out a way to create bank accounts and get into payment systems and rewards programs. And we have to be cognizant of that. The way to be cognizant is to be involved."
Jane Fraser, Citigroup
Citi's Jane Fraser seemed the most enthusiastic and touted that they're already live with "Citi Token Services" in four markets.She indicated the bank's intention to be a leader in cross-border, real-time payments.
"As a leading global bank in this space, we are laser-focused on innovations, which enable clients to access real-time 24/7 payments, clearing and settlement across borders and across currencies," she said.
"We are looking at the issuance of a Citi stablecoin. But probably most importantly is the tokenized deposit space, where we're very active," she said, adding, "This is a good opportunity for us."
David Solomon, Goldman Sachs
CEO David Solomon said that Goldman has deployed employees to think through how they'll implement stablecoin, but didn't have an answer on what the company's product might look like.
"We've got a very significant group of people at the firm that are really deeply focused on watching the evolution of this," he said, adding that the firm sees opportunities around funding and the easing of financial transactions.
"It's early to say specifically where we're going to invest and exactly how this will play out, but we'll continue to keep you posted," he said, adding that there's "a heightened level of focus here inside the firm."
Brian Moynihan, Bank of America
Brian Moyihan, BofA's CEO, was more cautious in tone. He said the bank is preparing for stablecoin demand but awaiting clear legal guidance before moving further.
"We're still trying to figure out how big or small it is," he said, adding "We're not seeing clients knocking on our door and saying, 'Please give me this right now.'"
He said the bank has "partnerships" with stablecoin firms. "It will be a complex array — and hopefully not complex to the customer, frankly."
Sharon Yeshaya, Morgan Stanley
Morgan Stanley's CFO, Sharon Yeshaya, said the bank is evaluating the stablecoin space and that there is no active deployment or public-facing product yet. Their approach is cautious and observational right now.
"We're actively discussing it. We're looking both at the landscape and the uses and the potential uses for our own client base," the CFO Sharon Yeshay said in the call. "But it really is a little early to tell, especially for the businesses that we run versus businesses that you might see from competitors on how stablecoin would necessarily play in."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
UK in 'debt doom loop', top investor Dalio warns
One of of the world's most successful investors has warned that the UK is stuck in a "debt doom loop". Hedge fund manager Ray Dalio, who founded Bridgewater Associates, was speaking as UK debt as a percentage of GDP (gross domestic product) rose to 101%. Long-term borrowing costs are higher than they have been at any point this century, giving the Chancellor Rachel Reeves little room to borrow more to fund spending, and thus requiring a focus on raising taxes instead. Mr Dalio told the 'Master Investor' Podcast with Wilfred Frost she risked alienating the very people who could help get the country out of its fiscal bind - mirroring concerns expressed by the boss of Goldman Sachs last week. Money latest: "The debt doom loop is affecting capital flows. So the necessity for creating taxations that then drive people away. "As the financial problems and the social problems worsen, having the effect of causing people with money to leave. "That's a problem because, I don't know the exact numbers in the UK, but they're analogous to the US, where 75 % of income taxes are paid by the top 10%. "So you have this financial deterioration, that precedes social and economic deterioration that has caused migrations all around the world and so on. And there is only one way to deal with that. Both of our countries need a strong leadership of a strong middle. They have to have the war between those of the left and those of the right begin to end because difficult choices are going to have to be made, you know, like our countries had in World War II. "The deficits for the central government, have to be lowered to about 3 % of GDP. That is what would be sustainable rather than having this compounding effect." The UK deficit is currently 5.1% of GDP, while in the US it is 6%. "They have to do it equally in spending cuts and taxation. And if that is done interest rates will come down not rise." Dalio outlines the process around the debt cycle in his new book How Countries Go Broke. And while many people are broadly aware of the debt problems advanced nations now face, he said that bond markets are complacent to the looming risks. "You get this complacency. So now the question for you or for your audience is, is it priced into the markets? Well, I'll answer the question and say, no, it is not priced into the markets." is available across multiple podcast platforms


Business Insider
an hour ago
- Business Insider
Suncorp Group (SNMYF) Gets a Hold from Citi
In a report released today, Nigel Pittaway from Citi maintained a Hold rating on Suncorp Group, with a price target of A$22.40. The company's shares closed last Friday at $10.83. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Pittaway covers the Financial sector, focusing on stocks such as ASX , Insurance Australia Group Limited, and AMP . According to TipRanks, Pittaway has an average return of 3.4% and a 56.50% success rate on recommended stocks. In addition to Citi, Suncorp Group also received a Hold from TR | OpenAI – 4o's Wesley Roofguard in a report issued on July 26. However, on July 25, Morgan Stanley maintained a Buy rating on Suncorp Group (Other OTC: SNMYF). The company has a one-year high of $17.99 and a one-year low of $10.37. Currently, Suncorp Group has an average volume of 531.


Bloomberg
4 hours ago
- Bloomberg
Goldman's Asset Arm Says Emerging Markets Catching Only ‘First Wave' of Flows
Emerging markets are set for further gains as renewed appetite for diversification and light positioning bolster the case for the asset class, which has been marred by years of outflows, according to Goldman Sachs Group Inc. 's asset-management division. 'The flow tide is turning — and we believe EM is catching the first wave,' said Anupam Damani, co-head of emerging-market debt at Goldman Sachs Asset Management. 'After years of being sidelined by US-centric risk taking, diversification is quietly reclaiming its place in global portfolios.'