The biggest banks and fintechs in the world rush to deploy theirs stable.
It is a kind of “gold rush” motivated by anticipation that cryptocurrencies will transform the cross-border payments market, the Financial Times (FT) reported Monday March 10).
For example, the report indicates, America Bank recently declared that he would plan to publish his own play, join the tastes of Paypal,, Band And Revolt. This is a trend driven by the growing acceptance of stablecoins – digital assets fixed to fiduciary currencies – among regulators around the world, added the FT.
“These are people who sell shovels in the stable gold rush,” said Simon TaylorCo-founder of Fintech Consultancy 11: FSwho described the situation as financial institutions living FOMO (“fear of missing”).
“The other thing that is motivated is that there is a real volume,” he said. “The founders want to get a song because they know they will get Stable regulations And it is therefore all these things that come together.
The stablecoins, the FT notes, have historically been used to transfer money between different cryptocurrencies, but become a popular alternative to local banks for payments on emerging markets, in particular in basic products, agriculture and shipping.
As the Pymnts wrote last month, the Stablecoins offer users the advantages of cryptocurrency – such as fast transactions and border -free transferability – but without volatility.
“However, so far, regulatory uncertainty has embarrassed their adoption, in particular among the cases of institutional use, ”says this report. “Risks for critical sectors and financial services remain despite market progress.”
For example, data from Chain-analysis shows that stablecoins are involved in 63% of illicit cryptographic transactionsSupplanting Bitcoin in recent years as a tool of choice for criminal activities, such as laundering stolen money and avoidance of sanctions.
In a separate report last week, Pymnts examined the use of stablescoins by fintech companies. For example, Stripe recently described stablecoins as “ambient -temperature superconductors for financial services” in a letter to shareholders.
Banks, on the other hand, are always mainly on the keyPymnts wrote, due to a combination of regulatory problems, risk appetites and structural agility.
“Fintechs, tirelessly by the restrictions of traditional banking charters, take advantage of their regulatory flexibility, their demand from customers and their technological prowess to advance,” says this report. “Meanwhile, the banks, which must meet compliance requirements and conservative risk frames, move with caution – if at all – in cryptographic space.”
