Some of the world's largest banks and fintech companies intend to compete with the business of the largest stablecoin issuers Tether and Circle, writes RBC Crypto. Bank of America, Standard Chartered, PayPal, Revolut, Stripe and others intend to launch their own stable tokens to cover the cross-border payments market. Despite the potential, analysts have warned that the market is unlikely to be able to withstand dozens of coins, as users begin to carefully examine the quality of such products.
Stablecoins have become the most used cryptocurrency. What you need to know about them Stablecoins are cryptocurrency tokens whose rate is tied to an asset, such as the dollar, euro, or an ounce of gold. Companies use securities, national currencies, or other crypto assets to collateralize the rate to the underlying asset. The most well-known stable tokens are issued by Tether (USDT) and Circle (USDC). Stablecoins were once used primarily for cryptocurrency trading, but today they have become a multifunctional tool for everyday use. In a new report, the analytics company Chainalysis noted that stablecoin transactions account for ⅔ of the total volume of transactions on the crypto market. Experts pointed out that this type of cryptocurrency is a critical element in the process of integrating blockchain products into the financial system and economy. The topic of developing a dollar-based stablecoin market has been promoted by US President Donald Trump since late January, when he signed his first executive order after his inauguration, “Strengthening US Leadership in Digital Finance,” which highlighted stablecoins as a key point.
“If they make it legal, we’ll get into the business,” says Bank of America CEO Brian Moynihan, commenting on the US administration’s plans to develop the stablecoin market.
Why stablecoins
While stablecoins have typically been used to transfer money between different crypto exchanges and exchanges, they are becoming increasingly popular in emerging markets as an alternative to local banks.
For example, Tether is also making inroads into the commodities market. In early November, it financed a crude oil deal between two companies. Although the names were not disclosed, one was a “supermajor” publicly traded oil company and the other was a top-tier oil trader. The deal itself involved facilitating the loading and transportation of 670,000 barrels of Middle Eastern oil worth about $45 million.
“With USDT, we will make markets that previously relied on slower, more expensive payment structures more efficient and faster,” said Tether CEO Paolo Ardoino, adding that they plan to expand the list of products and industries in the future.
“Embrace of the establishment.” How Tether's image has changed in a few years Tether is one of the fastest growing companies in the crypto market. At the end of July, Tether reported record profits – it earned more than $13 billion in 2024. The company receives most of its income in the form of interest on US Treasury bonds, which are used as reserves to ensure the issuance of USDT. Circle, the issuer of USDC, has a business model similar to Tether, being the second stablecoin by capitalization. They account for about 90% of the capitalization of the entire crypto market, or more than $201 billion ($58 billion and $143 billion, respectively). PayPal USD (PYUSD) is one of the few stablecoins from traditional fintech companies, issued by PayPal. The project has been around since mid-2023 and has a market cap of around $700 million, which was less than 0.4% of the entire market, according to Defillama as of March 10.
Growing competition
Banks are becoming more confident as regulations emerge, the Financial Times reports.
“We’re talking about people selling shovels during the stablecoin gold rush. They want to get a piece of the market,” said Simon Taylor, co-founder of fintech consultancy 11:FS, who likened it to FOMO, or the fear of missing out.
For example, the British bank Standard Chartered, together with the venture capital company specializing in investments in blockchain projects, Animoca Brands, and the Hong Kong telecommunications giant HKT, are creating a joint venture to issue a stablecoin backed by the Hong Kong dollar. And the American fintech company Stripe completed its largest deal yet, acquiring the stablecoin platform Bridge for $1.1 billion.
The Office of the Comptroller of the Currency (OCC), which regulates federal banks in the United States, has confirmed that banks will now be able to provide custody services for cryptocurrencies, including stablecoins.
Previously, banks had to obtain separate approval from the OCC before dealing in any digital assets. Now, the regulator has removed this requirement, while specifying that risk management should remain at the same level as for traditional banking operations. In addition, the OCC will not be included in risk warnings about either crypto assets themselves or their liquidity. Banks will now be responsible for assessing their own risks, and cryptocurrencies will no longer be considered a separate high-risk asset class.
“Stablecoins and more modern networks are really interesting for payments systems, and that’s our business,” said Stripe co-founder John Collison.
Index Ventures partner and Bridge investor Martin Mignot noted that stablecoins are attractive in markets that lack developed infrastructure or large liquidity, but have high currency risk. However, use cases in Western markets are “not so obvious,” he added.
Stablecoins are already the cheapest way to “move dollars,” analysts at the a16z fund noted. And it is expected that in 2025, not only retail users but also businesses will increasingly accept stablecoins for their payments.
According to the Visa payment system’s analytics panel, which tracks the stablecoin market, the monthly volume of all stablecoin transactions has remained above $700 billion since December 2024, while at the beginning of 2021, this volume was in the range of $200-$400 billion. The monthly number of transactions is also growing. Since mid-2019, the figure has grown from 1 million to 121 million in February 2025.
Despite the growth, 11:FS's Taylor cautioned that stablecoins are not cash, but merely a substitute for currency. And their reliability is determined by the issuer's credit risk, as well as its ability to manage the operational risks associated with using the stablecoin. This may indicate that the market is unlikely to see many offerings, as users are very careful to assess the risks associated with the issuer, rather than the stablecoin itself.
Источник: cryptocurrency.tech
