The race to embrace stablecoins is heating up, with major issuer Circle (CRCL) soaring in its first days of trading while the biggest banks in the US explore how to compete with Circle by issuing their own coins.

On Thursday morning, Circle founder and CEO Jeremy Allaire stood on a balcony before the trading floor at the New York Stock Exchange, pumping his fists and cheering before ringing the opening bell.

"Let's go! Let's go!" Allaire yelled.

By the end of the day, Circle's stock more than doubled after listing at $31. It closed Thursday at $83, up 167%. It rose another 29% Friday, closing above $107.

Circle's USD Coin (USDC-USD) is the world's second-largest stablecoin after Tether (USDT-USD).

Unlike bitcoin and other digital assets, stablecoin prices aren't supposed to fluctuate. Instead, they are pegged to assets such as the US dollar. They also serve as the lifeblood of the crypto world, accounting for the bulk of its transaction volume.

Wall Street isn't just celebrating the debut of a major stablecoin issuer. It's also considering how it can compete against Circle in the future.

A group of big banks, including JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and PNC (PNC), met last week in a working group to discuss the prospect of offering stablecoins in a collaborative effort, according to people familiar with the matter.

One idea currently being floated is creating a Zelle-like stablecoin network, according to people familiar with the matter.

Representatives for the Clearing House Payments Company and Early Warning Services, the fintech company behind Zelle, were also part of the working group for tech and innovation executives of member banks.

The meeting was exploratory and marked the early stages of a conversation between the member banks, two of the people said. This collaboration will be spearheaded by PNC CEO William Demchak.

The Wall Street Journal first reported the existence of these discussions.

Big banks are beginning to weigh their options for whether to buy, build, or partner with a crypto firm to issue these assets because potential legislation setting rules around stablecoins is currently making its way through Congress and is expected to move to a final vote soon.

Another broader bill focusing on crypto market structure will lay out which regulatory agency oversees which crypto assets and is expected to be introduced soon as well.

Read more: Can you buy crypto with a credit card? See the pros and cons.

Banks are also eyeing other crypto activities. At least two big Wall Street institutions — Morgan Stanley (MS) and Charles Schwab (SCHW) — plan to offer cryptocurrencies through their wealth management platforms sometime next year.