🏦 Banks Will Launch Stablecoins!

Bank of America CEO makes a big statement about the company's plans for stablecoins

Hey Thinkers 💡

Stablecoin Wars 2.0: Banks Are Entering the Game

A month ago, I posted on X about "Stablecoin Wars 2.0," predicting that with the SEC’s SAB 121 repeal, banks would aggressively move into the stablecoin and crypto space. That prediction is now materializing.

In the post I stated:

“The stablecoin market is about to get even more competitive. Why?

The SEC repealed SAB 121, removing restrictions on banks participating in crypto markets.

Stablecoin legislation is expected to pass this year, providing regulatory clarity and a green light for traditional financial institutions to dive into the space. JPMorgan was an early mover, launching JPMCoin in 2018 on the Quorum blockchain, a private, Ethereum-based network. However, it operated in a "walled garden," with limited reach and utility. Now, with the regulatory landscape evolving, JPMorgan and other banks can launch public stablecoins—a game-changer for the financial ecosystem.

Why Banks Will Enter the Game

Banks have historically controlled the flow of payments and money. However, with the rise of stablecoins, they are losing some of that dominance—and the lucrative revenue streams that come with it. Banks see the revenue Tether is generating and want a piece of the action. By issuing their own stablecoins, they will aim to regain control and tap into this rapidly growing market. Like PayPal and Ripple, banks already have the infrastructure, brand recognition, and massive customer bases to drive adoption of their stablecoins. This could spell a major challenge for existing players”

This morning news broke that Bank of America CEO Brian Moynihan confirmed that if comprehensive stablecoin legislation passes, the bank will enter the stablecoin business. He stated at the Economic Club of Washington, DC yesterday, “If they make that legal, we will go into that business.” This should come as no surprise, and other banks are surely crafting their own stablecoin and crypto strategies.

The Big Question: Which Blockchain Will Banks Use?

Many speculate that Bank of America and others may utilize Ripple’s XRP Ledger. Years ago, Bank of America filed a patent that described real-time net settlement using Ripple’s distributed ledger technology (DLT). With the evolving regulatory landscape, we may soon see major banks leveraging public blockchains to launch stablecoins at scale.

Legislation in Focus: The GENIUS Act

Senator Bill Hagerty’s Stablecoin Bill, the GENIUS Act, is gaining bipartisan support and could pass this year. Senator Cynthia Lummis, Chair of the Senate Digital Assets Subcommittee, reinforced the urgency, tweeting, “We need a bipartisan regulatory framework for stablecoins. Let’s get Senator Hagerty’s GENIUS Act across the finish line and to POTUS’ desk. The race is on, and America is falling behind.”

I recently discussed the potential timeline for both market structure and stablecoin legislation with Cody Carbone of The Digital Chamber. Be sure to watch that interview for key insights.

PayPal Expands PYUSD Stablecoin Integration

Meanwhile, PayPal is making aggressive moves with its stablecoin, PYUSD. Bloomberg reported yesterday that PayPal aims to:

• Have 20 million merchants using PYUSD by the end of 2025

• Integrate PYUSD into its bill-pay product for merchant payments in 2025

• Prioritize cross-border payments to reduce transaction friction

• Implement PYUSD as a direct payment option on Hyperwallet by Q2 2025

Banks & Financial Institutions Globally Embrace Crypto

Beyond the U.S., major banks worldwide are embracing digital assets. On Monday, Bloomberg reported that Germany’s DekaBank launched cryptocurrency trading and custody services for institutional clients after securing regulatory approval under Germany’s Federal Financial Supervisory Authority (BaFin).

Watch my recent interview with Greg Kidd, cofounder of Hard Yaka Ventures. His firm acquired Vast Bank last year and launched the USBC stablecoin. The bank plans to convert the stablecoin to a deposit token. Greg believes banks will use both stablecoins and deposit tokens.

Conclusion

The competition is heating up as banks and major financial players rush to establish their foothold in the crypto space. Stablecoin Wars 2.0 is officially underway.

___________________________________________

💥Thank You to my show Sponsors

Uphold is one of the best crypto exchanges out there and I have been using them since 2018!

Propy (PRO) is a blockchain-based real estate marketplace and decentralized title registry that leverages smart contracts to facilitate property transactions globally. It simplifies and automates real estate transactions, making them faster, more secure, and more transparent.

BitGo is one of the top custodians in the crypto industry. They provide the most secure and scalable solutions for the digital asset economy, offering regulated custody, borrowing and lending.

VeChain is a leading enterprise-grade L1 public blockchain, spearheading a digital revolution from a sustainable, highly scalable smart contract platform.

___________________________________________

📈Crypto Market Metrics

Here are some key data points from Santiment

Top 10 Coins Trending via Social Media

Developer Activity

The top 10 coins with the most developer activity over the past 30 days

___________________________________________

📺 Recent Interviews

Brian Q. from Santiment joined me to break down the metrics for Bitcoin, XRP, Solana, Ethereum as the crypto market sees a major correction.

___________________________________________

Support the Podcast

🖥️ Crypto Course

Learn Crypto with Expert Commentary from Founders, CEOs, and Institutional Investors. MyCryptoCourse.com

📖 ReThinking Crypto Book

Get the book on Amazon

-Tony