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.
-
To bridge the skill gap in this area, universities all over the world are working with private companies to provide blockchain-related training programs, according to Donika Kraeva, strategic communications manager at Dentacoin.
September 17
Dentacoin -
A new, 10-part podcast series examining housing blight; JPMorgan’s Jamie Dimon baits President Trump; U.S. Bank returns to small-dollar lending; and more from this week’s most-read stories.
September 14
-
The law could further boost the state’s already vibrant financial services sector as well as spur additional innovation across the state’s economy, writes Valentina Isakina, financial services marketing director for JobsOhio.
September 12 JobsOhio -
At a glance, New York regulator's first license to cryptocurrencies appears to be a good sign for other digital currencies. But there's a catch.
September 11
-
Governments should collaborate and work with society, the private sector, and academia to overcome current regulatory challenges to co-develop policies at the pace of technology, writes Manuel Martin, CEO and co-founder of Orvium.
September 11 Orvium -
While certainly connected in both concept and actuation, those with an interest in this burgeoning marketplace will be wise to note that both the risk and the regulatory landscape for existing cryptocurrencies differ from ICOs/tokens, according to Erin Fonte and Ferdose al-Taie, lawyers at Dykema.
September 11 Dykema -
Blockchains and other distributed ledgers are being applied to almost all businesses as a concept, but have had a tough time in ecosystems built on siloed data and complex technology.
September 11
-
Citigroup is developing a new mechanism for trading cryptocurrencies such as bitcoin that would put it at the forefront of Wall Street's efforts to let clients bet on the largely unregulated market, according to a person with knowledge of the plans.
September 10
-
For any emerging technology, skepticism is natural and blockchain will need to prove itself before it is widely adopted, writes David Hanson, co-CEO of Ultra.
September 10 Ultra -
Two financial technology companies — including Gemini Trust, the digital-asset exchange founded by Cameron and Tyler Winklevoss — won New York state approval to issue cryptocurrencies pegged to the U.S. dollar.
September 10
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