How could big banks change the game for stablecoins?
It's now or never for Wall Street banking institutions to adapt to the market demand for stablecoins, as major tech companies and retailers enter the market. Failing to adopt digital assets could pose a risk to their payments and deposits. French Société Générale plans to introduce a USD-backed stablecoin on the Ethereum blockchain.
While big banks are looking to address the growing competition from the cryptocurrency sector, this initiative is still in the conceptual phase, as much of the progress depends on upcoming legislation, including the GENIUS Act, which recently advanced in the Senate.
The GENIUS Act establishes a framework for both banks and non-bank entities to issue stablecoins, while restricting the participation of public companies outside the financial sector. Banks see an opportunity to leverage stablecoins for faster and more cost-effective payments, especially in cross-border transactions.
