The post Major Banks Jump into Stablecoin Ventures appeared on BitcoinEthereumNews.com.

Tether Holdings, the issuer of the leading stablecoin USDT, is poised to close 2024 with over $10 billion in net profits, igniting interest among major financial institutions worldwide. Banks across continents, from Europe to Asia, are now looking to establish their own stablecoin offerings. Which European Banks are Entering the Market? In Europe, prominent institutions are making strides in the stablecoin sector. Societe Generale has introduced a Euro-backed stablecoin for individual investors via its subsidiary, SG-Forge. Similarly, Oddo BHF is developing a Euro stablecoin, while UK-based Revolut is considering launching its variant. What are US Banks Planning for Stablecoins? In the United States, the potential for banks to enter the stablecoin arena hinges on regulatory clarity. Visa plans to bolster the technological framework through a tokenization network set to launch with BBVA in 2025. Additionally, JPMorgan Chase envisions a coexistence between stablecoins and its own digital deposit tokens, indicating a growing appetite for bank-issued alternatives. Key takeaways from the current climate include: Tether’s profits inspire banks to explore stablecoin options. European banks, including Societe Generale and Oddo BHF, are leading the charge. The success of US banks hinges on clear regulations and technological support. Concerns about liquidity and reserve backing persist among regulators. As cryptocurrencies continue to shape the financial landscape, banks see both opportunities and challenges in the stablecoin domain. Tether’s impressive profitability could be a catalyst for innovation, while the outcome of regulatory discussions will play a crucial role in determining market dynamics moving forward. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research. Source: https://en.bitcoinhaber.net/major-banks-jump-into-stablecoin-ventures

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Filed under: News - @ December 29, 2024 8:24 pm