Stablecoin

Noelle Acheson points out that, while banks are unlikely to issue stablecoins, the related businesses they are likely to end up offering could set the stage for a transformation of their relationship with their clients.

As stablecoins gain broader adoption in the U.S., they will eat into banks' deposits. As a result, lending in the U.S. may be increasingly funded by the wholesale capital markets.

Small practices are still mired in paper. Fiserv has joined banks such as JPMorganChase and Citizens in applying new third party transaction technology to the tricky sector.

FRNT is designed to streamline government disbursements while acting as a lure for digital financial services firms.

The Swedish financial institution will sell future buy now/pay later originations to Nelnet. Also, RBC and BMO may sell their payments joint venture; and other news in the global payments and fintech roundup.

Senate Banking Committee Chairman Tim Scott, R-S.C., asked crypto firms to keep spending in elections, and said that they "literally" put Bernie Moreno, Sherrod Brown's successor in Ohio, in the Senate.

Well-regulated stablecoins will open the door to a wide range of financial activities, including 24/7 global markets for any asset class imaginable. Traditional banks should take note.

The GENIUS Act would allow Special Purpose Depository Institutions, which are state-chartered uninsured banks, to expand to other states without the approval of state bank regulators, a provision that's now drawing criticism from consumer advocates and banking lobbyists.

Stablecoin issuers often use Treasury bills as backing reserves. That could put pressure on other parts of the financial system if the industry continues at its current growth trajectory.

Citigroup's new treasury partnership with Payoneer and JPMorganChase's deposit token are pressuring banks to quickly come up with a "vision," according to payment experts.