Several leading U.S. banks, including JPMorgan Chase (NYSE:JPM), Bank of America, Citigroup  (NYSE:C), and Wells Fargo (NYSE:WFC), are exploring the idea of launching a shared stablecoin, according to a report by The Wall Street Journal on Friday.

The initiative is being considered as a strategic response to mounting pressure from the expanding cryptocurrency sector, which continues to attract consumers with faster, decentralized financial services.

Sources familiar with the matter told the WSJ that early discussions are taking place among entities jointly owned by these banks, notably Early Warning Services – which operates the Zelle payment platform – and The Clearing House, a real-time payments infrastructure provider. These talks remain in the conceptual phase and could evolve significantly before any firm decisions are made.

Stablecoins, the digital asset category being considered, are cryptocurrencies backed by a reserve of traditional assets like the U.S. dollar. Their value is designed to remain steady, making them a potentially safer and more predictable option for digital transactions compared to more volatile crypto tokens like Bitcoin or Ethereum.

While the concept is still in its infancy, the move highlights the increasing urgency among traditional financial institutions to adapt to digital innovation and defend their market share in the rapidly changing payments landscape.