Zelle Operator Joins Stablecoin Race With Bank-Led Token
What ahead Warning Is Planning
Investor Takeaway
Why the Timing Matters
The initiative follows July’s passage of the GENIUS Act, the first U.S. dollar-backed stablecoins. The law opened the door for banks and fintechs to issue regulated tokens, though specific guidance from regulators is still pending. EWS’s exploration underscores how rapidly stablecoin technology following the legislation.
Other major players are also testing the waters. The Clearing House, owned by 20 large banks, has been discussing stablecoin pilots, while Circle, Stripe, and Google recently unveiled institutional-focused stablecoin platforms. Analysts expect competition to intensify as Wall Street firms join crypto-native issuers in targeting corporate and retail payments.
How large Could the Market Get?
The stablecoin market currently stands at $287 billion in circulating supply, according to DeFiLlama. JPMorgan analysts estimate the market could double or triple in the next two to three years, while Citigroup projects growth to $1.6 trillion–$3.7 trillion by 2030. David Solomon noted this week that integrating stablecoins into mainstream finance is “interesting and has our attention,” but warned adoption will be sluggisher than some expect.
For banks, stablecoins represent both an opportunity and a challenge. By tokenizing deposits, lenders could offer customers quicker, programmable payments while maintaining a foothold in digital finance. But they also risk competing head-on with private issuers like Circle or Tether, which already dominate global volumes.
Investor Takeaway
Zelle’s Scale and Strategic Advantage
Zelle, launched in 2017 as a bank-owned rival to PayPal, Venmo, and CashApp, processed more than $1 trillion in payments in 2024 and set a record $108 billion in monthly volume in July 2025. Leveraging that network could give a potential EWS stablecoin immediate reach across millions of U.S. households and small businesses.
For retail customers, such a token could offer seamless payments backed by banks they already trust. For institutions, it would provide compliance-forward infrastructure that fits within existing regulatory frameworks, potentially avoiding some of the risks tied to offshore stablecoin markets.
What Comes Next
EWS is expected to finalize a pilot plan in the coming weeks, though sources caution that any rollout will depend on regulatory feedback and alignment with member banks. The Clearing House and other consortia could also announce rival projects, intensifying competition. If successful, a Zelle-linked stablecoin could redefine how Americans use digital dollars in everyday commerce, anchoring bank-led efforts to keep pace with fintechs and crypto-native challengers.
