Stablecoins for Banks in 2025: The Strategic Playbook for Banks

Stablecoins for banks are blockchain-based digital tokens designed to maintain a stable value, typically backed one-to-one by fiat currencies like the U.S. dollar or euro. Unlike cryptocurrencies such as Bitcoin, which are volatile and speculative, stablecoins are intended for reliable use in payments, settlement, and value storage. 

Stablecoins differ from central bank digital currencies (CBDCs) in an important way. While CBDCs are issued and controlled directly by central banks, stablecoins are issued by private entities. These issuers may include fintech companies and other regulated financial institutions, including banks. Both stablecoins and CBDCs aim to digitize money, but stablecoins are currently more widely available and already used in commercial and financial applications. 

With a total market capitalization exceeding $208 billion and a growing presence in cross-border payments, corporate treasury operations, and emerging market finance, stablecoins are fast becoming a relevant tool in global finance. As regulation evolves and enterprise adoption increases, banks face a strategic question: how should they position themselves? 

In this article, we explore the current state of the stablecoin landscape, key regulatory developments and real-world corporate use cases. Most importantly, we provide a practical playbook for banks looking to take a leading role in this emerging space: not just to observe the changes underway, but to actively shape them. 

The Growth of Stablecoins 

As of Q1 2025, stablecoins, particularly USD-backed variants like USDT (Tether) and USDC (Circle), account for over 90% of stablecoin circulation (CoinGecko) with a total supply of USD 208 billion.

Analysts at Bernstein Research forecast that global stablecoin circulation could grow to nearly $2.8 trillion by 2028, driven by broader adoption. 

The bulk of stablecoin use is currently still within the crypto capital markets, rather than in everyday payments. For domestic retail payments, stablecoins are not addressing an immediate need because of existing efficient payment methods. 

However, for cross-border payments, particularly in remittances and B2B transactions, stablecoins could potentially gain traction due to the inefficiencies of the current correspondent banking system.  

Some major banks and fintechs have recognized this potential and have started different stablecoin initiatives: 

1. JPMorgan’s blockchain unit (Onyx) expanded its JPM Coin platform to support euro-denominated payments on its network, with Siemens as the first corporate client to use the Euro JPM Coin.  
2. PayPal completed its first-ever business transaction using its USD-backed stablecoin (PYUSD) by paying an Ernst & Young invoice via a blockchain-based transfer instead of traditional methods.  
3. Société Générale’s crypto arm (SG-Forge) launched a euro-pegged stablecoin called EUR CoinVertible (EURCV) and restructured it to be fully compliant with the EU’s new MiCA regulations, even obtaining an e-money license to broaden its usage.  
4. BNY Mellon deepened its partnership with Circle (issuer of USDC), enabling certain bank clients to send funds directly to or from Circle for USDC stablecoin creation and redemption – a notable integration between traditional banking and stablecoins.  
5. Standard Chartered’s Hong Kong branch formed a joint venture with Animoca Brands and HKT to apply for a Hong Kong Monetary Authority license to issue a Hong Kong dollar-backed stablecoin.  
6. Japan’s three largest banks (MUFG, SMBC, and Mizuho) joined a pilot platform called “Project Pax” to use stablecoins for cross-border payments; the system integrates SWIFT messaging with blockchain.  
7. Bank of America CEO Brian Moynihan indicated that the bank is prepared to launch its own dollar-backed stablecoin as soon as U.S. lawmakers enact clear regulations.  
8. Wells Fargo piloted a proprietary digital cash system and reported that this blockchain-based network was faster and more efficient than the traditional SWIFT system for internal cross-border transfers.  
9. ANZ Bank launched an AUD-pegged stablecoin and executed the first public blockchain transaction by an Australian bank, now expanding use cases including real-time pension payments.  
10. Earlier this month, Stripe announced it is rolling out Stablecoin accounts in 101 countries. 

These examples illustrate that stablecoins are gradually becoming part of mainstream financial infrastructure, not just for crypto-native firms, but for some of the world’s largest banks. 

Regulatory Clarity 

After years of uncertainty, regulation is finally taking shape, giving banks and corporates a clearer path to engage with stablecoins: 

Stablecoins in the United States 

In the United States, regulation of stablecoins is moving forward with two major bills: the GENIUS Act and the STABLE Act.

These proposals aim to create a legal framework for stablecoins that are used for payments. They would require stablecoin issuers to hold one-to-one reserves, publish regular audits, and follow clear rules to protect users.

The GENIUS Act, introduced in early 2025, has been identified as a top priority by the current administration and several lawmakers. It allows stablecoin issuers to operate under either federal or qualified state supervision, depending on their size and structure. It also encourages better compatibility between different stablecoins and clarifies that these tokens should not be treated as securities. The GENIUS Act is now advancing in the Senate after initial delays.

Together, the GENIUS and STABLE Acts are expected to provide the legal certainty needed for more banks and businesses to participate in the stablecoin market. 

Stablecoins in Europe 

In Europe, the MiCA (Markets in Crypto-Assets) regulation came into effect in mid-2024. It sets clear rules for stablecoins: issuers must hold full reserves, meet transparency requirements, and be authorized by financial regulators.

MiCA does not cover central bank digital currencies (CBDCs), but it allows regulated financial institutions (e.g. banks) to issue or support stablecoins, including acting as custodians or liquidity providers. This means banks in the EU now have a legal framework to engage with stablecoins in a compliant way.

Stablecoins in Singapore, Hong Kong, and the UK 

Singapore, Hong Kong, and the UK are also moving ahead with stablecoin rules. Singapore introduced clear requirements in 2023 for stablecoin reserves and redemption rights. Hong Kong now requires stablecoin issuers to be licensed, and the UK is working on new oversight under its financial services law. These steps aim to make stablecoin use safer and more transparent across different markets. 

Corporate Use Cases 

While many of the examples earlier in this article involve large corporates, similar benefits are beginning to emerge for small and medium-sized businesses (SMBs), particularly in global trade, import/export and emerging markets. 

Although stablecoins are currently used primarily as a settlement currency within the crypto economy, growing regulatory clarity is expected to unlock broader use cases for corporates: 

1) Cross-Border Payments 

Stablecoins offer the potential to make international transfers faster and more cost-effective compared to some traditional correspondent banking methods. For example, a payment from a European company to a U.S. supplier sent through SWIFT-based channels can incur fees ranging from $25 to $50, due to intermediary bank charges and other processing costs. Settlement may take 1–3 business days, depending on factors like time zones, cut-off times, and currency conversions. 

By comparison, transferring USDC, one of the most widely used stablecoins, via the Solana blockchain, a leading public blockchain, typically costs less than $0.01 in network fees and settles in under 5 seconds. When supported by appropriate infrastructure (such as wallets and custody providers), these funds can be received and accessed by the counterparty almost immediately. This kind of speed and efficiency can be especially useful in high-volume, low-margin industries, where improved cash flow and cost savings have a meaningful impact. 

2) Currency Stability in High-Inflation Markets  

In high-inflation or capital-controlled economies like Argentina, stablecoins offer businesses a more stable way to manage cash. For example, a small Argentine importer earning revenue in pesos may struggle to preserve value due to inflation exceeding 100% (for 2024). Converting pesos into a USD-backed stablecoin (like USDC) immediately after receiving payments allows them to hold value in digital dollars, accessible 24/7 and without needing a foreign bank account.  

Both large corporates and SMBs in emerging markets are already using stablecoins to avoid currency risk, settle international invoices, and even pay local salaries pegged to a USD equivalent, functions traditionally handled via foreign exchange or offshore banking relationships, but now increasingly managed through digital wallets.

3) “Programmable Treasury” 

Stablecoins are making it possible for businesses to automate payments based on real-world conditions. This is known as programmable treasury. Think of it like a smart contract: money can move when certain conditions are met, such as when goods are delivered or a fuel tank is refilled. 

JPMorgan added this kind of functionality to its stablecoin (JPM Coin) in late 2023, and the impact was immediate. Transaction volumes jumped, especially in smaller, automated payments.  

One real-world example involves Siemens, which uses programmable payments via JPM Coin to automate internal treasury transfers based on predefined conditions. Citi has done something similar with Maersk, using smart contracts and tokenized deposits to automate bank guarantee payments when a vessel is cleared to transit a canal.

This kind of automation can save time, reduce manual work, and help businesses manage their finances more precisely. As more banks explore these tools, programmable treasury could become more popular. 

Key Risks 

Before banks begin thinking about how to support the corporate use cases described above, they should consider several important risks. These are not reasons to avoid the space, but they do require thoughtful planning and the right controls. 

1. Security and custody: If a bank chooses to hold stablecoins on behalf of clients, it takes on responsibility for keeping those digital assets safe. That means protecting against cyberattacks, theft and internal misuse.  
2. Compliance (KYC/AML): Stablecoin transactions take place on blockchains, but the identities behind those transactions aren’t always obvious. Banks will need to adapt their compliance processes (e.g. KYC, source-of-funds checks, and sanctions screening) before supporting stablecoin payments.
3. Issuer and counterparty risk: Stablecoins are created by private companies, not central banks. This means banks must assess how each stablecoin is backed (e.g. cash, short-term treasuries), how redeemable it is, and whether the issuer is transparent and regulated. Working with a small number of reputable issuers, and conducting ongoing due diligence, can help manage this risk. 

Opportunities for Banks 

Banks are in a strong position to lead the next wave of stablecoin adoption, but they must decide whether to take a proactive role or wait and see. A forward-thinking approach offers advantages. By moving early, banks can establish themselves as the primary channel for businesses to access stablecoins, which are still difficult for many to use due to poor user experience and complicated onboarding processes on crypto-native platforms. 

Today, most stablecoin infrastructure is geared toward retail or crypto-savvy users. For corporates, accessing stablecoins still involves a lot of manual steps and unfamiliar tools like wallets. Banks can fill this gap by offering familiar, secure interfaces that integrate stablecoin functionality into their existing online banking and treasury services. 

Here are key roles banks can already start developing: 

1. Conversion services: Helping clients move between fiat currency and stablecoins (and vice versa), or between different stablecoins, especially as the ecosystem becomes more fragmented. This also includes foreign exchange between different stablecoins (e.g., exchanging USDC for EURC).
2. Custody solutions: Holding stablecoins securely on behalf of their clients, so that they do not need to deal with the complexity of managing crypto wallets themselves.
3. Onboarding and compliance: Streamlining KYC/AML, source-of-funds checks, and transaction screening for blockchain-based payments.
4. Advisory services: Guiding clients on how and when to use stablecoins for payments, treasury management or regional risk hedging. 

Banks entering the stablecoin space early have an opportunity to shape client expectations around access and pricing.  

Today, stablecoin conversion services, such as exchanging USDC for USD on platforms like Coinbase, can incur fees ranging from 0.1% to 0.2% for business clients, depending on transaction volume and account type. These costs are significantly higher than the FX spreads typically offered by banks for major currency pairs, which often range from 0.01% to 0.1% for corporate clients.  

By offering stablecoin services through familiar and regulated channels, banks could provide a more competitive and seamless experience while still maintaining healthy margins. 

Beyond revenue, banks can gain strategic insight into how their corporate clients are beginning to engage with digital assets, insight that can shape future product development. The question is not whether clients will use stablecoins, but whether they will do so through their bank, or somewhere else. 

A Strategic Playbook: Stablecoins for Banks 

Banks that want to explore stablecoin services don’t need to wait for the perfect moment or fully-fledged regulation. There are clear, practical steps they can already take to test use cases and unlock value for their business clients. 

Here are the kinds of services banks can begin offering today: 

1. Stablecoin visibility: Let clients view their stablecoin balances alongside their fiat positions. 
2. Send and receive stablecoins: Enable outward and inward transfers for selected stablecoins  
3. Fiat-to-stablecoin conversions (and vice versa): Offer access to digital dollars and euros through regulated issuers, with the bank as the onboarding channel. 

Importantly, these capabilities don’t have to be launched at scale from day one. Banks can begin by working with a small set of interested clients, whether large corporates with complex treasury needs or SMBs engaged in cross-border business, exploring treasury innovation or operating in emerging markets. 

To support this journey, TreasurUp offers interested banks access to our continuously improving Innovation Playground, a live, white labeled environment for our strategic partners. The platform includes real stablecoin functionality such as balance display, transaction initiation and receipt (currently via self-custody), and preview access to conversion tools. It’s designed to help banks move from discussion to experimentation, and from experimentation to new offerings. 

By starting small, testing fast, and staying close to client needs, banks can turn stablecoins from a risk into a strategic advantage. 

Final Thoughts 

We expect that stablecoins will be increasingly integrated into the financial infrastructure that businesses rely on. While uncertainty remains for now, especially around regulation, the direction is clear: stablecoins are expanding from crypto into the business world. 

Banks that respond early can shape how this technology fits within their client offerings. Whether as a facilitator of transfers, a trusted converter, or a compliance partner, banks have meaningful roles to play. 

At TreasurUp, we are committed to supporting this evolution. We believe that, when properly integrated into a bank’s online channels, stablecoins can enhance business banking services. From multinational corporations to smaller firms involved in international trade, stablecoins have the potential to address specific client needs such as faster cross-border payments, currency stability and automated treasury operations. 

With the foundations now being laid, the path forward will be shaped by the decisions banks make today.

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