Big banks like JPMorgan, Citibank, and Bank of America are about to enter the $275 billion stablecoin industry? But could a long-standing industry incumbent stand in its way? And no, it's not Tether or Circle.

Wyoming-based Custodia Bank, led by Caitlin Long, says that it has a patent that covers bank-issued stablecoins. And she appears ready to deploy it against the big banks…

“Custodia applied early for the patent on bank-issued stablecoins, and it was granted in 2022, covering both stablecoins and tokenized bank deposits,” said Long in a July 2025 interview. “We are already aggressively pursuing infringers.”

Industry experts express doubts about Custodia’s ability to actually box out Wall Street, but that may not be the only card that she has to play.

The potential for negotiation or cross-licensing remains open, especially if the big banks want to avoid protracted legal proceedings. “Custodia’s patent is a strategic tool,” says one attorney, “but large banks’ deep patent portfolios could lead to countersuits or licensing deals.”

Read the full story from @RegulatoryJason