Wall Street Signals Stablecoin Fightback as Crypto Bills Advance

In a rare public embrace of the once-shunned world of crypto, the heads of America’s largest banks made one thing clear this week: stablecoins are no longer at the fringe of finance.

On earnings calls, JPMorgan’s Jamie Dimon, Bank of America’s Brian Moynihan and Citigroup’s Jane Fraser each described the upstart “digital dollar” as a potential threat to the banking industry’s grip on payments — and signaled they’re preparing to respond.

Unlike more volatile cryptocurrencies, stablecoins are designed to hold their value and settle payments instantly, around the clock. That simple functionality — fast, programmable dollars ...