Banks large and small have started to warm up to the idea of their own stablecoins, despite early doubts from some executives that there will be much demand for them. Some bank executives over the past year had shrugged off the need for stablecoins and the industry waged a lobbying battle against crypto firms that wanted to offer stablecoins that would act like bank deposits. Instead, banks banded together to launch a tokenized deposit system as an answer to the rapid changes in the world of payments.

Stablecoins are digital tokens pegged to the U.S. dollar or other currencies, while tokenized deposits are just traditional money represented as digital tokens. But now a number of banks have started to consider whether there could be a need for both, even if only as a defensive play, as some executives worry stablecoins could encroach on their businesses. Big nonbank companies such as Visa, Black Rock, Google and Door Dash have moved to get involved in the stablecoin market, which has been dominated by Tether and Circle.

JPMorgan Chase recently evaluated whether it could launch its own stablecoin, according to people familiar with the matter. Those conversations have been preliminary and there is no active product under way, another person said. The largest U.S. bank already has a tokenized deposit called JPM Coin and its own blockchain. A group of more than a dozen financial institutions including Bank of America, Wells Fargo and Santander has been moving forward on a stablecoin venture that would reach across the globe.

Smaller banks are working on similar initiatives, too. On Tuesday, a consortium of state bankers associations unveiled their plans to launch a blockchain platform built for, owned and governed by banks. Called the Bank Chain Alliance, the tech platform would be used for treasury management, supply-chain finance and cash management. It is expected to launch in the first half of 2027 and support both tokenized deposits and stablecoins.