SCOTTSDALE, Ariz.–Two financial services firms have announced plans to begin issuing their own stablecoins.
Early Warning Services, the multi-bank-owned company behind the Zelle payments network, plans to explore issuing its own stablecoin for retail bank customers in the coming weeks, according to a new report.
“Still in its early days, the plan would focus on the infrastructure to create and issue a stablecoin aimed at retail bank customers,” Yahoo Finance reported.
As the report noted, a stablecoin is a crypto asset that, unlike bitcoin, isn’t supposed to fluctuate. Instead, it has a price pegged to other assets, most commonly the US dollar.
‘Small-Scale Test’
“This undertaking, which would likely start with a small-scale test project, would give customers at some of the country’s biggest US banks a way to use stablecoins in everyday payments,” the report added.
The Clearing House, a payments company and banking association owned by some 20 large banks, is also considering stablecoin initiatives, but those haven’t yet moved beyond discussions, sources told Yahoo Finance.
Representatives for Early Warning Services declined to comment to the news outlet.
Mortgage Firm Plans Stablecoin
Zelle is not alone. Troy, Mich.-based mortgage lending fintech LitFinancial announced it plans to launch of litUSD, a U.S. dollar-backed stablecoin built on the Ethereum in partnership with Brale and Stably.
The company said the token is designed to “modernize” mortgage lending, streamline treasury operations and increase transparency in mortgage finance.
Issued as an ERC-20 token by Brale, a -registered money services business, litUSD is backed one to one with cash and cash equivalents held in reserve, according to the company. Businesses can mint or redeem tokens through bank transfers or USDC using verified Brale accounts, according to LitFinancial.
‘Essential Tool’
“Stablecoins are rapidly becoming an essential tool for modern treasury operations,” CEO Tim Barry said in a statement. “With litUSD, we’re building resilience and adaptability into our business model while pioneering how mortgage finance can evolve with blockchain technology. Everything has been intentional, especially building litUSD on ETH due to its stability, decentralized nature, and aligning with domestic policies.”
