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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As it seeks to disrupt the social media model of capitalizing on user content and data, Canadian technology company Yuser is launching an app that will create and market ways to sell digital works online.
March 30
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Visa Inc. said its payments network will use a stablecoin backed by the U.S. dollar to settle transactions, as blockchain technology gains more acceptance in the established financial system.
March 29
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Wallex hopes its EURST stablecoin will be transparent and familiar enough to appeal to mainstream payment companies.
March 26
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Paysafe is adding cryptocurrency options to its Skrill digital wallet in the U.S. through a partnership with Coinbase that will allow users in most states to buy and sell multiple cryptocurrencies.
March 25
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Non-fungible tokens are taking the digital world by storm. They could displace traditional payment rails, but they could also be a handy tool for cybercrooks.
March 23 -
Non-fungible tokens are taking the digital world by storm. They could displace traditional payment rails, but they could also be a handy tool for cybercrooks.
March 23 -
Democratic leaders are encouraging the Federal Reserve to develop its own digital currency to expand financial services access. Chair Jerome Powell indicated the central bank plans to take a methodical approach.
March 22![“We have an obligation to be on the cutting edge of understanding the technological challenges, as well as the potential costs and benefits, of issuing a [central bank digital currency],” said Fed Chair Jerome Powell. But, he added, "Because we’re the world’s principal reserve currency, we don't need to rush this project, and we don't need to be first to market.”](https://arizent.brightspotcdn.com/dims4/default/aeb3835/2147483647/strip/true/crop/3000x1688+0+0/resize/1280x720!/quality/90/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F25%2Fdc%2Fb4fb547245f29e576203fc912f94%2Fpowell-jerome-bl-032221.jpg)
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Banks, credit card companies and digital payments processors are nervously watching the push to create an electronic alternative to the paper bills Americans carry in their wallets, or what some call a digital dollar and others call a Fedcoin.
March 22
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The former acting comptroller of the currency will help the technology company move its secure data exchange technology into the financial market.
March 15 -
Binance Holdings, the world's largest cryptocurrency exchange, has named prominent former U.S. politician Max Baucus as a policy and government relations adviser.
March 12
![“We have an obligation to be on the cutting edge of understanding the technological challenges, as well as the potential costs and benefits, of issuing a [central bank digital currency],” said Fed Chair Jerome Powell. But, he added, "Because we’re the world’s principal reserve currency, we don't need to rush this project, and we don't need to be first to market.”](https://arizent.brightspotcdn.com/dims4/default/3951e3f/2147483647/strip/true/crop/3000x1688+0+0/resize/1440x810!/format/webp/quality/90/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F25%2Fdc%2Fb4fb547245f29e576203fc912f94%2Fpowell-jerome-bl-032221.jpg)
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