Major financial institutions are aggressively entering the stablecoin sector, banking regulators and Congress are closely watching regulatory developments like the GENIUS bill, while the cryptocurrency market itself is focused on evolving use cases beyond trading venues. This week’s Crypto Biz newsletter examines Wall Street’s bank ambitions in stablecoin payments, highlights a new entrant in this space, analyzes asset class performance, and explores California’s initiative to adopt blockchain technology for government.
Banking Giant Ambitions in Stablecoins
Wall Street’s pursuit of stablecoins continues with several major financial institutions formally announcing their interest or plans to launch their own digital dollar-pegged assets.
During its most recent earnings call, JPMorgan CEO Jamie Dimon stated the bank intends to develop a stablecoin “to stay ahead of the competition,” citing the tool’s strategic importance.
Similarly, Citigroup’s outgoing CEO Jane Fraser confirmed the bank is actively exploring stablecoin issuance, marking another significant move into the space.
Bank of America (BoA) provided a more detailed perspective. CEO Brian Moynihan declared stablecoins are under serious consideration to modernize the bank’s payment infrastructure. He noted that these digital assets could eventually support the movement of upwards of trillions of dollars daily in client assets if built upon secure payment rails.
Emerging Player Opens Stablecoin Network Doors
Crypto exchange OKX has expanded its stablecoin offerings by joining Paxos’ Global Dollar Network (GDN). This reinforces Paxos’ USDG stablecoin and potentially extends its reach to the 60 million users of OKX.
OKX announced support for USDG token enables user trading and transfers. This token, launched in 2023 by Paxos, differentiates itself through a regulatory-first approach, registering under Singapore’s MAS framework and the EU’s Markets in Crypto-Assets (MiCA) regulation, with reserves held at DBS Bank.
S&P 500 Reaches Record Highs, But Performance Against Bitcoin Tells a Different Story
The traditional stock market index the S&P 500 recently reached a new all-time high following a swift recovery from recent volatility, but its performance is dramatically underwhelming when measured in Bitcoin.
According to The Kobeissi Letter, while the S&P 500 logged year-to-date gains of approximately 6%, it has underperformed Bitcoin by an astonishing 15% during the same period.
Furthermore, Bitcoin demonstrates significant long-term outperformance. Since the coin’s inception in 2012, the cumulative, inflation-adjusted value of the S&P 500 represents only a fraction (0.02%) of its original, a loss of more than 99.98%.
California Engages Crypto Leaders for Government Innovation
State of California Governor Gavin Newsom has launched the Breakthrough Project—a collaborative initiative focused on modernizing state government operations and enhancing public services. The project explicitly aims to leverage the expertise of influential figures from the blockchain and cryptocurrency sectors.
Prominent executives from firms including Ripple and Coinbase among others have joined this effort. The project held its debut meeting at Ripple’s San Francisco headquarters.
Governor Newsom viewed California not just as the birthplace of modern technology but as uniquely positioned to foster collaboration between policy leaders and industry innovators for public sector advancement. The initiative seeks deeper engagement between lawmakers and technology leaders promoting innovation in public services and digital infrastructure.
