Investing.com-- The largest U.S. banks are in early discussions to launch a joint stablecoin, aiming to counter the growing competition from the cryptocurrency industry, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

The talks have involved institutions tied to JPMorgan Chase & Co (NYSE: JPM ), Bank of America (NYSE: BAC ), Citigroup (NYSE: C ), and Wells Fargo (NYSE: WFC ), the WSJ report said.

Other entities include Early Warning Services, operator of Zelle, and the Clearing House, a real-time payments network, the report stated.

The idea remains in its conceptual stage, and any decision will hinge on forthcoming legislation, including the GENIUS Act, which passed a key Senate procedural step this week, the WSJ reported.

This bill would create a framework for both banks and nonbanks to issue stablecoins, though it imposes limits on public companies outside the financial sector.

Stablecoins, which are pegged to government-issued currencies like the U.S. dollar, are widely used in crypto markets for transactions and as cash substitutes.

Banks see potential to leverage stablecoins for faster, lower-cost payments, especially cross-border transactions, according to the report.

The consortium’s goal would be to prevent further erosion of their payments and deposit base, particularly if big tech firms or retailers enter the space. One model under discussion would allow both large and regional banks to use the coin, the report said.