JPMorgan, the largest bank in the United States, has confirmed its entry into the stablecoin sector. CEO Jamie Dimon announced the plan during an earnings call, positioning the bank against major players like Tether, Circle, and Ripple.

The move comes as the crypto market prepares for upcoming regulation, including the U.S. stablecoin bill. It also follows JPMorgan’s pilot testing of its own tokenized payment solution.

JPMorgan’s Stablecoin Entry Confirmed by CEO Jamie Dimon

Jamie Dimon confirmed that JPMorgan will explore stablecoins alongside its deposit token initiative. He shared the update during the bank’s second-quarter earnings call, as reported by CNBC.

Dimon stated, “We’re going to be involved in stablecoins and deposit tokens because we have to understand it.” The bank has already launched the JPM Coin and plans to pilot it on Coinbase’s Layer-2 Base network. The token is pegged to the U.S. dollar and will provide a faster payment solution for JPMorgan’s clients.

Although JPM Coin is currently limited to institutional use, Dimon did not rule out possible public access in the future. He acknowledged that stablecoins are real, although he questioned their usage versus traditional payments. Despite his earlier criticism of Bitcoin and the broader crypto space, Dimon said, “We have no choice unless we want to lose ground.”

JPMorgan Competes with Tether, Circle, and Ripple in Stablecoin Market

JPMorgan’s entry into stablecoins brings it into direct competition with leaders in the space. Tether and Circle dominate with USDT and USDC, which have a combined market cap exceeding $130 billion, according to CoinMarketCap.

Ripple, through its new stablecoin plans and its recent banking license application, also aims to expand its offerings. Both Ripple and Circle have filed applications to become nationally regulated banks. Dimon noted that “these guys are smart,” referring to the crypto firms entering traditional banking. He added that they are aiming to build banking tools, payment systems, and loyalty programs.

This competitive pressure has pushed traditional banks to act quickly to stay relevant. JPMorgan’s participation is seen as a strategic response to defend its dominance in payments.

Other Major U.S. Banks Eye Stablecoin Solutions Amid Regulatory Push

Other top U.S. banks are also preparing to issue their stablecoins. Bank of America CEO Brian Moynihan has confirmed that his institution is exploring the sector. Citigroup executives said they are reviewing tokenized deposits and crypto custody as part of their blockchain expansion.

These developments align with anticipated U.S. legislation on stablecoins. The House of Representatives is set to vote on the GENIUS Act, a bill that will regulate stablecoin issuers. This could allow firms like Circle and Ripple to operate under federal standards.

U.S. Treasury Secretary Scott Bessent has projected that the stablecoin industry could reach $2 trillion under the new law. The regulatory clarity is expected to level the field for both banks and crypto-native firms.