Global Banks and Fintech Firms Enter the ‘Stablecoin Race’

Some of the world’s largest banks and fintech companies are planning to launch their own stablecoins, aiming to capture a share of the cross-border payments market, according to FT.

This segment is expected to see widespread adoption of “stablecoins.”

In February, Bank of America expressed openness to launching a stablecoin, thus showing readiness to join Standard Chartered, PayPal, Revolut, and Stripe in a business dominated by Tether (USDT) and Circle (USDC).

The enthusiasm of new entrants is fueled by growing regulatory acceptance of “stablecoins” worldwide, noted FT. The momentum is largely linked to Donald Trump’s return to the U.S. presidency. The working group on cryptocurrencies he formed has prioritized developing a regulatory framework for stablecoins. Congress is already discussing a relevant bill.

“If they make it legal, we’ll get into this business,” stated Bank of America CEO Brian Moynihan.

Last month, Standard Chartered announced it would lead a joint venture planning to launch a token based on the Hong Kong dollar. Payment company Stripe completed the acquisition of infrastructure platform Bridge for $1.1 billion.

“Stablecoins and more modern networks are really interesting for use in payments, which is what our business is built on,” noted Stripe co-founder and president John Collison.

PayPal, having already issued PYUSD, plans to expand the coin’s applications in 2025. The company anticipates growing demand from U.S. importers paying overseas suppliers.

New entrants face stiff competition in the sector. According to Visa, PYUSD transactions amounted to $163 million this month, while Tether’s figure exceeded $131 billion.

The total market capitalization of the stablecoin segment is approaching $236 billion, with ~$143 billion attributed to USDT and ~$58 billion to USDC (CoinGecko).

The most common use of stablecoins remains crypto trading. However, the assets have gained popularity in some emerging markets as a substitute for hard currency. In some cases, they are used for cross-border transfers. For instance, SpaceX uses them to transfer funds from Starlink service sales in Argentina and Nigeria.

Index Ventures partner Martin Mignot noted that stablecoins are “attractive” for markets lacking “developed infrastructure or large liquidity,” as well as those with high currency risks. However, for leading economies, their use cases “do not seem so obvious,” the expert believes.

Analysts warn that the market “may not support” dozens of new coins, as consumers begin to scrutinize the quality of the companies behind the assets.

Simon Taylor, co-founder of fintech consultancy 11:FS, pointed out that stablecoins are quasi-money, thus reflecting the issuer’s credit risk.

Back in April, the bitcoin exchange Crypto.com planned to launch its own “stablecoin” in the third quarter of 2025.