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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A new blockchain mobile app, the first of its kind, is making waves across the pond with the goal of making “everyone a bank.”
May 30
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The money will be used to hire more people. It is also a morale boost for the group, which has suffered some high-profile recent defections.
May 23
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Nasdaq and Citi are partnering to utilize blockchain technology to expand and improve cross-border and private company securities payments.
May 22
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Nasdaq Inc. and Citi Treasury and Trade Solutions are partnering to utilize blockchain technology to expand and improve cross-border and private company securities payments on Citigroup's business services platform.
May 22 -
The creators of a top "altcoin" are building privacy features for JPMorgan's blockchain platform.
May 22
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IBM's new Blockchain Founder Accelerator could better position the distributed ledger technology as a platform for mainstream payments, but the technology giant wants to start with baby steps.
May 22
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It is not startups but rather Silicon Valley’s biggest names that are best-positioned to compete with banks in the blockchain race.
May 18
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Some banks seek to dominate the digital-identity business, but they stand to benefit even if their efforts fall short.
May 17
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Royal Bank of Canada is applying blockchain technology to its loyalty program, in an effort to make its rewards more tangible and accessible.
May 17
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Cambridge Blockchain, one of many startups applying blockchain technology to customer privacy and data collection issues, is teaming up with LuxTrust to launch a new identity platform.
May 15
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