Investment - Articles - Stablecoins and US Banks

 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