The post Banks and Fintechs Race to Launch Stablecoins appeared on BitcoinEthereumNews.com.

World’s largest banks and fintechs are racing to launch their own stablecoins which are digital currencies pegged to the value of a dollar. Recently, Bank of America signaled its interest in entering the stablecoin game, joining the ranks of established companies like PayPal, Standard Chartered, Revolut, and Stripe in targeting a market currently dominated by crypto giants Tether and Circle. Institutions and Companies Race to Claim Their Share of the ‘Stablecoin’ Cake! One of the reasons behind this surge in stablecoins is that regulators worldwide are warming up to stablecoins as they could become a more accepted part of the global financial system. This shift in regulatory stance has been further fueled by US President Donald Trump’s pro-crypto policies. Simon Taylor, co-founder of fintech consultancy 11:FS, compares the current frenzy to a “gold rush,” where companies are eager to “sell shovels.” With regulators now considering more favorable rules for stablecoins, investors are quickly developing a “fear of missing out” on stablecoin-focused businesses. Stablecoins are becoming an alternative to traditional banking systems for payments in sectors like agriculture, commodities, and shipping. Stablecoins allow individuals and companies to bypass banks, making international transactions faster, cheaper, and more accessible. Currently, around $210 billion worth of stablecoins are in circulation globally, with Tether (USDT) and Circle’s USDC making up the lion’s share. Interestingly, companies like Elon Musk’s SpaceX are using stablecoins to repatriate funds from satellite sales in places like Argentina and Nigeria, while businesses like ScaleAI are offering to pay overseas contractors in digital tokens. Also Read: Circle CEO Suggests Stablecoins, Smart Contracts For US Govt Funds Last month alone, stablecoin transactions hit $710 billion, a significant jump from $521 billion the year before. Meanwhile, the number of stablecoin addresses grew by 50%, reaching 35 million. As regulators worldwide take a closer look…

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Filed under: News - @ March 10, 2025 7:21 am