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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The two leading contenders vying for the cryptocurrency crown both have serious backing, but the technology is still developing and the endgame is still a ways away.
March 7
Financial Services Club -
Bank blockchain leaders say the technology is solid and privacy's been solved mostly. They’re focused now on integration, collaboration and saving money.
March 2 -
The Canadian bank completed a months-long trial of technology developed by AlphaPoint, the tech startup said.
March 2 -
Banks have traditonally lagged behind in embracing innovation, though blockchain provides the opportunity to quickly ramp up digital services.
March 2
Maxpay -
The acquisition of Cryptowatch is the most recent in a series of deals struck by Kraken in the last year.
March 1 -
The effort to create an enterprise Ethereum could lead to robust private blockchains, but one of the key strengths of the project has to do with Ethereum’s roots as an open-source platform.
March 1
Bussmann Advisory -
IBM's work with Northern Trust and Hyperledger and Microsoft's alliance with JPMorgan and others show the different approaches the tech giants are taking with the technology.
February 28 -
The Structured Finance Industry Group and Chamber of Digital Commerce will explore ways distributed ledger technology might speed transaction processing and improve transparency.
February 27 -
Blockchain, the technology behind bitcoin, is increasingly seen as a way to cut costs for international payments.
February 24 -
The fast-moving innovations enabled by blockchain technology defy the ability of state governments to regulate the distributed ledger space constructively and efficiently.
February 24Schiff Hardin
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












