Top US banks planning a unified stablecoin project

The largest US banks are planning to develop a joint stablecoin, reports Investing.com, citing insider sources. The initiative is driven by growing demand for digital tokens and a favorable legal environment for stablecoins.

The outcome of the project will largely depend on regulatory approval, sources noted.

This week, the US Senate approved a draft bill on stablecoins, which lays the foundation for regulatory oversight. The legislation requires that stablecoins be fully backed by US dollars or other liquid assets, and mandates annual audits for issuers with over $50 billion in capitalization. The bill is not yet finalized.

In addition to major banks, the project involves The Clearing House and Early Warning Services, the fintech firm behind the Zelle peer-to-peer payment network.

Stablecoin regulation is not limited to the US — Hong Kong’s Legislative Council recently passed a similar bill to regulate fiat-backed stablecoins. Read 'Zamin' on Telegram!