Circle (CRCL) stock closed Wednesday down 2.3% at $89.91 before recovering by more than 2% in pre-market trading. The shares had still gained more than 14% over the previous five sessions and about 44% over the past month, according to Yahoo Finance. The latest decline followed a report that traditional banks are exploring stablecoins (digital tokens designed to maintain a stable value), including a possible joint initiative involving Bank of America, Wells Fargo and Santander. JPMorgan Chase has examined issuing a stablecoin but said it has no current plans to launch one. The prospect of banks using their large customer networks has raised concerns that they could challenge Circle’s USDC business. Analyst Shay Boloor said large-scale bank distribution could reduce stablecoin activity flowing through Circle and USDC, while Visa, BlackRock and Google have expanded their involvement in the sector. Circle retains potential catalysts, including the planned September public mainnet launch of its Arc blockchain initiative and last month’s regulatory approval from the U.S. Office of the Comptroller of the Currency (OCC), a U.S. banking regulator, for Circle National Trust, its national trust bank. Bernstein analysts set a $140 price target and said USDC’s growth prospects do not depend on passage of the CLARITY Act. Enterprises entering digital currencies will need to assess stablecoin infrastructure providers for compliance and smart contract routing.