Tether’s Growth Ignites Banks’ Interest In Blockchain-Based Stablecoins

Global banks are beginning to take an interest in stablecoins, inspired by the success of Tether. According to reports, some banks are already involved, with SG-Forge, a branch of Societe Generale, launching its euro-backed stablecoin for private investors earlier this year. Revolut is thinking about creating its stablecoin, and so is AllUnity, a project with Deutsche Bank-owned DWS.

The report also revealed that American banks will likely join in, once Congress creates rules for stablecoins. This is similar to what happened in Europe: the new Markets in Crypto Assets (MiCA) rule and Tether stopping its EURt stablecoin made room for new competitors.

Visa Rolled Out A System To Support Banks In Developing Stablecoins

The Chief Executive Officer of SG-Forge, Jean-Marc Stenger, says he believes other banks will start launching their stablecoins. He added that the task will be difficult and it may not happen right away but it will surely happen.

He also stated that his company is discussing with other banks who intend to use its stablecoins and is thinking about teaming up or letting other banks use its technology to create their coins.

In October, Visa rolled out a tokenization network to help banks launch stablecoins and is working with BBVA on a trial next year. The firm is also in discussions with several other banks.

Cuy Sheffield, Visa’s crypto leader noted that Visa has seen interest from banks in Brazil, Singapore, and Hong Kong. He added that the company is working with a lot of banks around the world at different stages.

According to a report from PYMNTS, Visa’s huge network and its close ties with banks around the world can make stablecoins more trusted and steady.

Visa’s Efforts Could Make Stablecoins More Popular And Reduce The Risk Of Crashes

By helping banks launch their own stablecoins and bring tokenized deposits into their infrastructure, Visa could help make stablecoins more popular and reduce the risk of crashes. Experts believe that as banks get involved with rules in place, people might see stablecoins as a more reliable asset.

PYMNTS also talked about how stablecoins are becoming a big deal, as the currency is growing to be a key part of cross-border and business crypto payments, linking to regular finance.

The report revealed that Cross-border payments, which have a history of being slow and expensive, changed a lot in 2024. Blockchain tech became very helpful, making payments faster, cheaper, and more open. Stablecoins were very important in this, allowing businesses to avoid the usual slow and expensive banking networks and complete payments almost instantly, according to the report.