Tether’s success sparks banks’ interest in stablecoins

Inspired by Rope Success, the banking giants in the world appear Interest in stable currencies.

As Bloomberg News reported on Saturday (Dec. 28), some banks are already in place, with Societe Generale Forge (SG-Forge) opening its euro-backed stablecoin to retail investors earlier this year. revolution And it is said By looking at her king versionas is the case with AllUnity, a project involving Deutsche Bank-owned DWS.

Meanwhile, the report added, US banks are expected to follow suit once Congress enacts stablecoin legislation. Something similar happened in Europe: Adoption the Regulation of Crypto Asset Markets (MiCA). Tether’s decision to discontinue its stablecoin EURt has opened the door to competitors.

“Do I think other banks will issue their bonds? king Stablecoins? Jean-Marc StengerSG-Forge CEO said in an interview with Bloomberg. “The answer is yes. It’s a heavy lift, and I’m not sure it’s going to happen anytime soon, but it will happen.

He added that his company is already in discussions with other banks that want to use its stablecoins, and is also exploring partnerships or white-labeling its technology to allow banks to issue their own stablecoins. king coins.

Visa, in the meantime Launched coding network In October for banks to issue stablecoins, It is collaborating with BBVA on a pilot next year, It is in talks with several other banks.

“We have seen demand from banks in Hong Kong, Singapore and Brazil.” Coy SheffieldVisa’s head of cryptocurrency told Bloomberg. “We are actively dealing with Number of Banks All over the world At different stages of the process.”

As PYMNTS wrote in October, the size of Visa’s network and its relationship with financial institutions All over the world Allowing it to add stability and legitimacy to stablecoins.

“By enabling banks to… Their version king stablecoins By integrating token deposits into its systems, Visa can promote widespread adoption, reducing the risk of market panic that often leads to decoupling events.

“Furthermore, as banks enter the fray with their own regulatory frameworks in place, the perception of stablecoins as a credible asset class could improve.”

PYMNTS wrote about this issue last week The rise of stablecoins It has become impossible to ignore, as the currency continues its rise as the basis for cross-border and institutional crypto payments and a bridge to traditional finance.

Cross-border payments, Plagued historically “With high fees and slow transaction times, it will undergo a major transformation in 2024,” this report said. “Blockchain technology has emerged as a key enabler, providing transparency and speed and Cost efficiency. “Stablecoins have played a crucial role, allowing businesses to bypass traditional correspondent banking networks and settle transactions almost instantaneously.”