Stablecoins
How are banks approaching dollar-backed digital assets (stablecoins)?
Stablecoins have moved from the edge of the
Banks are testing stablecoins for cross-border payments, liquidity management, and digital wallets. Some are also exploring how stablecoins can support interbank transactions or be issued directly by regulated institutions. As the landscape takes shape, stablecoins are starting to look less like an experiment and more like infrastructure.
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Banks are merging the ubiquity of fiat money with the advantages of digital networks and are building the kinds of products crypto firms can't match.
1h ago
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The former New York governor will chair a new effort aimed at tokenizing financial products on chain and bringing 24/7 digital trading to NYSE-listed assets.
June 22
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Chair Travis Hill said the Silicon Valley Bank failure showed banks can't always sell securities fast enough to cover deposit outflows, but acknowledged the "stigma problem" with discount window borrowing remains unsolved.
June 18
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Zelle, Western Union, SoFi and others are all launching stablecoins, adding to the thousands of other digital assets that do essentially the same thing as bitcoin.
June 16
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The DTCC is building out a blockchain-based platform for post-trade processing and custody; if it works, it will mean a significant rewiring of the markets.
June 15
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Tokenization of assets is going to transform global finance, but by dragging their heels on establishing clear rules of the road, U.S. regulators could be pushing the development of key infrastructure overseas.
June 12
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The blockchain fintech acquired the real estate lender through a joint venture to tokenize housing loans and test its new AI-powered onboarding agent.
June 11
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The original cryptocurrency lies at the bleeding edge of the risk curve, and its cross currents say something about how feisty the market is feeling.
June 10
American Banker -
House Financial Services Committee Chair French Hill, R-Ark., said he is optimistic that his Senate counterparts will develop compromise language for a crypto market structure bill that President Donald Trump will sign, though some details may be left to regulators to iron out.
June 9
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The former crypto wunderkid added a presidential-pardon application to the long list of attempts to get his sentence reduced.
June 9
The first three months of the year coincide with the start of President Donald Trump's second term in office. Investors are likely to be more interested in banks' outlooks amid swings in tariff policy than the first-quarter results.
Frequently Asked Questions:
How are banks approaching dollar-backed digital assets (stablecoins)?
Stablecoins have moved from the edge of the crypto, world to the center of policy and banking conversations. As regulators and banks weigh their role in payments, settlement, and reserves, this page follows the developments — from early pilots to proposed legislation.
Banks are testing stablecoins for cross-border payments, liquidity management, and digital wallets. Some are also exploring how stablecoins can support interbank transactions or be issued directly by regulated institutions. As the landscape takes shape, stablecoins are starting to look less like an experiment and more like infrastructure.
Why are banks paying attention to stablecoins?
Stablecoins are increasingly viewed as a potential upgrade to legacy payments systems. Banks are evaluating them for settlement, remittances, cross-border transactions, and tokenized deposit models.Are banks issuing their own stablecoins?
Some are exploring the option. Institutions like JPMorgan (with JPM Coin) and new entrants like PayPal are piloting bank-issued stablecoins, while others are watching regulatory developments before moving forward.How do stablecoins impact compliance and risk?
Issues include KYC/AML enforcement, cybersecurity, operational risk, and how reserve assets are held and reported. Banks exploring stablecoin activity must weigh both technological benefits and regulatory scrutiny.How are regulators responding to stablecoin innovation?
Congress is debating stablecoin-specific bills focused on reserve backing, issuer licensing, and oversight. The Federal Reserve, OCC, and state regulators are also shaping how bank involvement in stablecoin activity is supervised.How are banks using stablecoin?
Banks are using stablecoins to speed up cross-border payments, manage liquidity across global branches in real time, and test new forms of settlement between institutions. Some are integrating stablecoins into retail-facing digital wallets, while others are exploring interbank networks built on tokenized payments. These efforts are less about crypto speculation and more about making money move faster, with greater transparency and fewer intermediaries.- Real-time cross-border payments
- Internal liquidity management
- Retail-facing digital wallets
- Interbank tokenized payment networks
Top banks investing in stablecoin
List of institutions with greatest investment in stablecoin:- JPMorgan Chase – JPM Coin
- Custodia Bank – Avit Tokens
- Citigroup - Citi Token Services
- Societe Generale - USD CoinVertible
- Bank of America - Name yet to be released
- Fifth Third - Name yet to be released
- U.S. Bancorp - Name yet to be released