Stablecoin Strategy: Next Steps for Financial Institutions

Adapting to the digital currency landscape in the wake of JPMorgan’s Announcement 

Strategic Imperative 

This week’s announcement of JPMorgan Chase's formal entry into the stablecoin market with its JPMorgan Deposit Coin (JPMD) marks a pivotal moment for the financial industry. Stablecoins are evolving from fintech experiments to core infrastructure for payments, settlement, and liquidity. Financial institutions (FIs) must now determine how to compete, comply, and capitalize. 

As 2026 board / strategic planning begins to take place, banks and credit unions should put a placeholder on development of a digital strategy via digital currency for 2026 projects. In preparation for those discussions, the following key next steps should be included. While the financial institution may not engage in all or several of these activities, it will be important to define which will benefit the bank or credit union for 2026 and beyond.  

Key Next Steps for Financial Institutions 

1. Define Your Stablecoin Strategy

- Clarify objectives: Efficiency, innovation, or client retention 
- Decide: Issue your own stablecoin, adopt a partner solution, or both 
- Prioritize use cases: Cross-border payments, B2B settlement, treasury services 

2. Ensure Regulatory Readiness

- Monitor evolving legislation (e.g., GENIUS Act, OCC guidance) 
- Establish compliant frameworks: KYC, AML, reserve transparency, smart contract audits 
- Engage regulators early and often 

3. Build or Integrate Digital Asset Infrastructure

- Evaluate blockchain options (Ethereum L2s, Hyperledger, etc.) 
- Secure custody and wallet solutions via institutional partners 
- Explore tokenized deposits for on-chain settlement 

4. Engage in Industry Consortiums

- Collaborate with peer banks via groups like USDF, The Clearing House 
- Push for interoperable standards and shared issuance models 
- Position for broader adoption with aligned governance 

5. Pilot Real-World Use Cases

- Launch B2B payment pilots for institutional clients 
- Test retail apps for token-based payments and remittances 
- Develop commercial use cases: escrow, supply chain, FX 

6. Upskill and Educate

- Train internal teams in digital asset operations 
- Brief executives and boards on stablecoin impact 
- Educate clients on benefits, risks, and adoption pathways 

7. Future-Proof Your Position

- Prepare for Central Bank Digital Currencies (CBDCs) 
- Design infrastructure for programmable payments and tokenized assets 
- Stay flexible to integrate with public and private ecosystems 

Bottom Line 

Stablecoins are reshaping financial infrastructure. As regulatory clarity improves and competitive momentum builds, financial institutions that move now will not only protect existing revenue streams, but they will define the next generation of banking.  

Engage fi is available to assist in having stablecoin discussions with your team. We also can help your bank or credit union with defining each key step in further detail, developing a strategy and presenting it to your team or board. For more information, visit www.engagefi.com.  

*https://www.linkedin.com/posts/sytaylor_breaking-citi-unveils-its-stablecoin-activity-7351180045081600002-d-sQ?utm_source=share&utm_medium=member_ios&rcm=ACoAAAEpKDEBdkbBo1wDOqspMY4ZrBdm17sLIFs