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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To convince skeptical bankers about the benefits of distributed ledger technology, some suggest it needs to be separated from the volatile digital currency it underlies.
November 30
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The son of late billionaire George Lindemann, who made a fortune in cable television and gas pipelines, is hosting a conference next week during Art Basel Miami Beach to explore how the blockchain, his latest obsession, can transform the art world.
November 29 -
Blockchain may have received its most exposure as the distributed ledger technology at the foundation of cryptocurrency exchanges, but its use cases are advancing into other data-driven or supply-chain industries pursuing the Internet of Things.
November 28
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Bitcoin extended its tumble on Monday after breaking below the $4,000 level over the weekend, putting the 2018 crash within striking distance of the cryptocurrency’s worst bear markets.
November 26 -
Earlier this year Ripple announced that it has dedicated $50 million toward the University Blockchain Research Initiative, partnering Ripple with 17 universities around the globe from the U.K. to Brazil, with the aim of accelerating new innovations in blockchain and cryptocurrencies.
November 20
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Andrew Keys, co-founder of the venture capital firm ConsenSys Capital, has a vision of the future bankers might find chilling, in which banks and other middlemen are cut out of financial services.
November 19
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This week's plunge in bitcoin's value highlights one of the biggest concerns in using the cryptocurrency for payment. Stablecoins, which are pegged to traditional currency such as the U.S. dollar or a precious metal, are seen as a much less risky investment.
November 16
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A Brooklyn, New York, man agreed to plead guilty to conspiracy to commit securities fraud in what’s believed to be the first such case involving an initial coin offering -- the rough equivalent of an IPO for digital currencies, according to a person familiar with the matter.
November 15 -
Standards are important to push blockchain payments, but the systems also need dynamic scale, according to Byung Ik Ahn, CEO of Fantom Foundation.
November 15
Fantom Fondation -
Policymakers and industry officials should join forces in creating regulations and standards for cryptocurrencies, artificial intelligence and other innovations before they become more widespread.
November 13
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