Stablecoins: The New Thing Your Bank Wants You to Know About (Because Why Not?)

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So, here’s the scoop: Traditional finance institutions in the US, Europe, and Asia have decided to finally stop pretending they’re scared of stablecoins. Now that the regulatory fog has cleared, they’re diving in like it’s the latest season of “The Bachelor.”

In the payment world, companies like PayPal, Mastercard, and Visa are not just launching stablecoins, they’re basically integrating them into everything. It’s like they’re hosting the stablecoin party, and everyone’s invited (including you, yes, you with the credit card). They’re either making their own coins, working on payment systems for them, or building the infrastructure to support the whole thing.

And guess what? It’s not just big corporations getting in on the action. Nope, banks are jumping in too. In early October, a bunch of high-profile international banks (hello Goldman Sachs, Deutsche Bank, Bank of America, and others) created a super cool club to explore issuing “reserve-backed” digital money on public blockchains. Yes, it’s as fancy as it sounds. 😎

Things started really picking up steam after the US President (the one who used to be a reality TV star, no big deal) signed the GENIUS Act into law on July 18. Now, different financial players are experimenting with all kinds of models – from fully collateralized stablecoins to tokenized deposits and wholesale settlement tokens. It’s a race. And everyone’s looking to win. 🏁

GENIUS Act: The US Stablecoin Race Is On!

Before the GENIUS Act, the main route for US stablecoins was through New York’s trust charter regime (which, by the way, is super exclusive). PayPal got in on this in August 2023 by launching PayPal USD (PYUSD) through Paxos, because why wouldn’t they?

Then, there’s Fiserv, who jumped on the stablecoin bandwagon in June 2025 with FIUSD, and they plan to integrate it into banking systems by year-end. Seriously, they didn’t even wait for the party to start-they were first in line. They’re also partnering with the Bank of North Dakota for a super cool interbank settlement project called “Roughrider Coin.” We’re not sure if that’s a cowboy reference or a cryptocurrency, but either way, it’s bold. 🤠

Meanwhile, Mastercard is in a cozy relationship with Paxos’ Global Dollar Network (yep, another network, because who needs just one?) to settle stablecoins across payment systems. Visa, not to be outdone, began settling USDC on Ethereum in 2021 and expanded to Solana in 2023. It’s like they’re collecting stablecoins like Pokémon cards.

Custody and trust banks are securing the whole asset-servicing layer like the secret service guarding a rockstar. BNY Mellon is now taking care of stablecoins issued by Ripple and Société Générale. They’re like, “Yeah, we’ve got this.” 🕶️

And then there’s JPMorgan, who’s doing its own thing with JPMD, a deposit token that’s an alternative to stablecoins. Basically, they’re piloting it on Base. Don’t worry, though, they’re still figuring it out. Because why not take your sweet time when you’re a billion-dollar institution?

Also, major retailers like Walmart and Amazon are reportedly looking into launching their own stablecoins. So, forget about just getting discounts on your groceries. Soon you’ll be paying in WalmartCoin. Or maybe AmazonStableCoin? Who knows?

Oh, and don’t forget about Western Union-they’re preparing USDPT on Solana for cross-border remittances. Because when you think “remittances,” you think Solana, right? 😉

The GENIUS Act takes effect after an 18-month implementation period or 120 days after final rules are released. So, stay tuned for more drama in the world of digital finance!

MiCA: Europe’s Answer, But the Dollar Won’t Back Down

Now, let’s talk Europe, shall we? Despite MiCA coming to the rescue in mid-2024, US dollar-pegged stablecoins are still the reigning champs globally. USDC and USDT have more liquidity than your favorite celebrity’s Instagram posts. Sorry, Europe.

One of Europe’s main concerns? Jürgen Schaaf, a payments adviser at the European Central Bank, warned that if Europe doesn’t do something, they’ll basically let the US take over. It’s like being the only kid in the class who didn’t get a snack. 😬

In France, Société Générale’s digital asset arm is handling the fancy EURCV and USDCV stablecoins, while in Germany, AllUnity is launching EURAU across blockchains. It’s like they’re trying to make the euro cool again.

But the biggest move? A group of nine European banks, including ING and UniCredit, are banding together to launch a euro stablecoin in 2026. Let’s hope it’s worth the wait!

Asia: It’s Not All Zen and Stablecoins

Now, let’s head over to Asia, where things are happening at a slightly slower pace. Japan, the early adopter, made sure stablecoins are legit by passing some rules in June 2023. And guess what? The big banks like Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are working on launching a yen-backed stablecoin. Move over, yen – the future is digital! 💰

Hong Kong, on the other hand, is all about that regulatory control. Their regime started in August, but they’ve been picky about who gets to play. Spoiler: Not everyone gets an invite to the party. Chinese tech giants wanted in, but… yeah, Beijing said, “Nope.”

Big news from Standard Chartered Hong Kong, though! They’ve partnered with Hong Kong Telecom and Animoca Brands to launch a Hong Kong dollar-backed stablecoin once they get that sweet, sweet approval.

Cleaning Up Stablecoins’ Reputation

Remember when stablecoins were the villain in every finance horror story? That all changed after Terra’s UST disaster in 2022. It was like the stablecoin version of that disastrous reality show season we all pretend never happened.

Now, regulators are making sure stablecoins are backed by cash or short-term liquid assets, so that the whole “algorithmic stablecoin” thing is pretty much out. It’s like the cool kids finally letting the nerds into the party, but with way less drama.

All this new regulation is allowing traditional finance institutions to enter the stablecoin market with centrally managed coins and bank-issued deposit tokens. Basically, stablecoins are starting to look like the new normal in both consumer and institutional payments. Who knew the future would be so… stable?

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2025-11-07 16:42