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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Over the last few weeks the SEC has clamped down on two initial coin offerings — and in doing so, raises questions about whether shady ICOs are a byproduct of other avenues for cryptocurrency fraud being closed down.
December 20 -
The blockchain startup continues to pack its board with mainstream finance experts.
December 19 -
The key to safety is not just the proliferation of investment options, but also the knowledge that hopefully accompanies it, writes Stephen Bielecki, a lawyer at Kleinberg, Kaplan, Wolff & Cohen.
December 19
Kleinberg, Kaplan, Wolff & Cohen -
One of the indirect offshoots of Brexit is a government program that's designed to keep the U.K. relevant by lending a hand to new companies.
The program, FCA Innovate, may have a global effect by nurturing companies that aim to retire static authentication modes such as usernames and passwords.December 19 -
JPMorgan Chase get a new branch banking leader; Trump's anti-Wells tweet stokes concerns; blockchain, GSE survival, and more in this week's top stories.
December 15 -
With Wall Street on board, investors look to spend coins on real estate or through bitcoin debit cards.
December 15 -
Coinbase wants loans, venture capital, payments, accounts receivable and stock trading done with electronic currency, using Coinbase instead of banks.
December 15 -
Readers chime in on the GOP’s inheriting vast regulatory powers, the continuing back and forth over who leads the Consumer Financial Protection Bureau, the root causes of cryptocurrency hacks, and more.
December 14 -
Lenders on the fringe of the financial industry are now pitching a solution to bitcoin investors in need of funds but wary of cashing in: loans using a digital hoard as collateral.
December 14 -
Rather than forming a consortium of peers to investigate blockchain technology, as many banks have done, one of the world's largest asset managers is acting on its own.
December 12
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













