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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Responding to an unnamed bank that had sought the opinion, the regulatory agency issued an interpretive letter clarifying that an institution's custody services can be used for cryptographic keys and other digital currency-related assets.
July 22 -
Mastercard is stepping up its involvement with cryptocurrencies by inviting digital payment operators to launch crypto cards through its platform, beginning with U.K.-based Wirex.
July 20 -
Securities laws, in spite of their shortcomings, exist for very good reasons: to regulate the fair exchange of units of ownership, to protect individuals from fraud or exploitation and to identify bad actors and hold them accountable.
July 20
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What made the attack on famous Twitter accounts so problematic wasn’t the high profile of its victims, but the non-technical and repeatable method the assailants used.
July 16 -
The best intentioned efforts to bridge racial or gender gaps, or to create a more inclusive market for a financial project, will likely fail unless there’s careful attention paid to a lack of diversity at the onset.
July 14 -
The Bank of England is reviewing whether it should create a central bank-backed digital currency, according to governor Andrew Bailey.
July 13 -
As a cryptocurrency entrepreneur who helped launch Stellar and Dogecoin, Marshall Hayner has long been interested in finding a way to use blockchain — the digital ledger technology originally developed for Bitcoin — to solve some of the data privacy issues relating to payments.
July 8 -
A blockchain-based digital dollar deserves serious consideration if only because its adoption would mark the beginning of a modern, more efficient government payment structure, says Polyient Labs’ Jeff Hinkle.
July 6
Polyient Labs -
The payment company's move refutes the "you can't spend it" argument against crypto, says METACO's Seamus Donoghue.
July 2
METACO -
For the next several decades, more and more assets will be managed through blockchain, and the world of digital assets will thrive, says DeFiner.org's Jason Wu.
July 1
DeFiner.org
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










