Investment - Articles - Stablecoins and US Banks


While stablecoins offer efficiency and innovation in the financial system, they pose both opportunities and risk for banks, potentially disrupting deposit bases, payment fees, and traditional lending.

 Key Highlights
 -- Stablecoins have demonstrated rapid growth with increasing integration into payment systems.
 -- Recent legislation has lowered the barrier to entry for banks to enter the stablecoin market.
 -- Over time, large-scale adoption of stablecoins could cause deposit disintermediation and payment disruption for banks.

 "Whether stablecoins ultimately represent an opportunity or a threat to U.S. banks will depend on regulatory design and market adoption. A regulatory framework could channel stablecoin activity through banks, helping the sector capture new revenue streams while reinforcing their central role in the U.S. financial system," said Maureen Levelis, Vice President of North American Financial Institution Ratings at Morningstar DBRS.

 Morningstar DBRS Commentary on Stablecoins and US Banks

 
 
 
 
  

Back to Index


Similar News to this Story

IHT remains goldmine and set for record year as Budget looms
Just Group comment on the latest HMRC update showing that Inheritance Tax (IHT) receipts totalled £5.20 billion through the first seven months of the
Lots of noise but little signal from recent US data
Marcus Jennings, Fixed Income Strategist, Global Unconstrained Fixed Income, Schroders, explains why now the US government shutdown is over, we expect
Urgent need for investor action on sustainability
Rathbones convenes industry to address global challenges, from climate tipping points to modern slavery. First Group-wide Responsible Investment Summi

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.