Some of the World's Biggest Banks and Fintech Firms Are Racing to Launch Their Own Stablecoins

They aim to grab a share of the expanding cross-border payments market. According to the Financial Times, Bank of America, Standard Chartered, Revolut, and Stripe

Some of the world’s biggest banks and fintech firms are racing to launch their own stablecoins in a move that is set to spark even greater competition for a share of the expanding cross-border payments market.

As reported by the Financial Times, Bank of America, Standard Chartered, Revolut, and Stripe have signaled plans to issue their own digital assets. This move will allow them to directly challenge stablecoin leaders Tether and Circle.

TradFi Giants Eye Stablecoin Market Share, Challenging Crypto-Native Leaders

The shift comes as stablecoins become a real part of the financial system. This trend also shows a change from past skepticism, especially after the failure of Meta’s Libra stablecoin plan six years ago.

Importantly, the trend is growing further under the Trump administration, which has embraced cryptocurrencies. According to recent reports, the U.S. Congress is debating bills that would standardize stablecoin regulations. This initiative aims to provide banks and businesses with greater confidence to enter the market.

Stablecoins Gain Mainstream Acceptance Beyond Just Crypto

The surge in stablecoin development has been called a modern-day gold rush. “It’s about people selling shovels in the stablecoin gold rush,” said Simon Taylor, co-founder of fintech consultancy 11:FS.

He explained that the rapid expansion is driven by fear of missing out (FOMO). This feeling compels firms to establish a presence before stablecoin regulations are fully in place.

“The other thing that’s driven it is real volume,” he added. “Founders want to get a piece of it because they know they’re going to get stablecoin regulation, and so it’s all of those things coming together.”

Stablecoins Facilitate Low-Cost, Instant Transactions for Diverse Businesses

Interestingly, businesses in sectors like commodities, agriculture, and shipping are using stablecoins for transactions. According to a recent report by PYMNTS, this new generation of payment technology is especially useful in regions with unstable currencies, like Argentina, where merchants prefer to be paid in stablecoins.

Unlike traditional banking systems, stablecoins provide instant, low-cost transfers, particularly in unstable macroeconomic regions.

Related: Investors Lie in Wait As Stablecoins Circulating Supply Surges Over $16B in 2025

The Integration of Stablecoins into the Mainstream Financial System

The optimistic outlook on stablecoins is shared by Tom Hayes, founder of crypto hedge fund, Spark Digital Capital. In a recent interview with Bloomberg, Hayes highlighted the potential of Tether (USDT) to revolutionize the financial landscape.

The market’s growth is clear in current figures. As of this year, the global supply of stablecoins has reached $231 billion. According to data from Tether, the company’s token (USDT) is the most widely used, with $142 billion in circulation. In comparison, Circle’s USDC has $57 billion in circulation.

Moreover, transaction volumes hit $710 billion last month, up from $521 billion a year earlier, according to data from Visa.

New Stablecoin Entrants Face Uphill Battle Against Established Leaders

Despite the growth, new stablecoin issuers have challenges to overcome. For example, established players like Tether processed over $131 billion in transactions last month. In contrast, PayPal’s PYUSD only processed $163 million. According to the report, this disparity in activity underscores the substantial lead held by Tether and Circle in the rapidly expanding stablecoin market.

Experts suggest that while stablecoins are beneficial in markets with high currency risk, their adoption in Western economies is still not certain. According to a report by the Financial Times, Standard Chartered is preparing to launch a Hong Kong dollar-backed stablecoin.

To strengthen their positions, companies are making strategic acquisitions and partnerships. Last month, Stripe bought stablecoin platform Bridge for $1.1 billion. This was its largest acquisition ever.

Chief executive of Bank of America Brian Moynihan recently reacted to the Trump administration’s crypto plans. He noted that the bank will venture into the business if the government legalizes stablecoins. According to a recent report by BTC Today, Moynihan stated that Bank of America is capable of issuing its own stablecoin if the administration grants approval for banks to do so.

Meanwhile, the European Union has put in place new compliance rules. The UK’s financial regulator is expected to issue guidance later this year.

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