Banks are rapidly integrating stablecoins into their services, moving from questioning their place in finance to exploring their implementation.
By Olivier Acuna|Edited by Sheldon Reback Jul 5, 2026, 2:00 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Standard Chartered is the latest bank to provide institutional clients with the ability to mint and redeem Circle's USDC stablecoin. (Olivier Acuna/CoinDesk)SummaryShow- Major banks like Standard Chartered and BNY are increasingly incorporating Circle’s USDC into their operations, indicating a shift in focus from whether to use stablecoins to how to implement them.
- Industry leaders assert that the true value lies in the liquidity and networks surrounding stablecoins, as institutions look for reliable payment and settlement systems.
- European banks are actively working on euro-denominated stablecoins to retain settlement activities within their own currency rather than relying on dollar-backed tokens.
Standard Chartered (STAN) recently announced that it will provide institutional clients with direct access to minting and redeeming Circle Internet's (CRCL) USDC, marking a significant addition to its digital asset services.
This move aligns with a broader trend among financial institutions, as they develop product offerings centered around stablecoins, which were once primarily seen as a means for retail investors to navigate crypto volatility. Now, these fiat-pegged tokens are becoming integral to the global financial system. According to Chainalysis, stablecoin settlement volumes could soar to a staggering quadrillion dollars annually by 2030.
Just days before Standard Chartered’s announcement, BNY, recognized as the largest custody bank globally, enhanced its support for USDC, enabling institutional clients to use its infrastructure for custody, minting, and redeeming the stablecoin. With $59 trillion in assets under management, both Standard Chartered and BNY are classified as global systemically important banks by the Bank for International Settlements' Basel Committee.
These actions highlight a trend where banks prefer to utilize established stablecoin networks instead of creating their own solutions. The dialogue within the banking sector has evolved; the focus has shifted from questioning the role of stablecoins in finance to how banks can integrate into the emerging networks.
"Banks aren't questioning whether they'll adopt stablecoins anymore. They're determining the ways in which they'll leverage them," stated Andrew MacKenzie, CEO and founder of the Scotland-based stablecoin issuer Agant.
This conversation gained momentum when Circle CEO Jeremy Allaire reacted to the launch of OpenUSD, a competing stablecoin backed by firms like Coinbase (COIN), Stripe, and BlackRock (BLK). Allaire emphasized that USDC's success is founded on years of establishing liquidity, banking relationships, and obtaining regulatory approvals.
Adrian Cachinero Vasiljevic, co-founder and partner at Steakhouse Financial, which provides advisory services on decentralized finance, echoed this sentiment, asserting that the ecosystem surrounding stablecoins is crucial.
"The network itself generates the value," he noted. "The stablecoin, in many ways, becomes secondary to that."
Read more: Circle’s USDC Overtakes Tether's USDT in Onchain Activity as Regulation Drives Shift: JPMorgan
Nevertheless, new stablecoins continue to emerge, particularly in Europe, where there is less established infrastructure and significant reliance on dollar-pegged tokens, which dominate over 99% of the stablecoin market cap.
Jan-Oliver Sell, CEO of Qivalis, a consortium of 37 European financial institutions working on the Euro On-Chain (EUOC) stablecoin, highlighted that Europe has regulatory measures in place under the Markets in Crypto-Assets (MiCA) framework. However, it lacks sufficient euro-denominated liquidity to keep settlement activities from shifting to dollar-backed stablecoins.
"If we don’t establish a euro on the blockchain, banks will opt for the dollar due to its availability and high liquidity," Sell remarked to CoinDesk. Rather than each bank creating its own euro stablecoin, Qivalis advocates for collaborative efforts within a unified network.
Sell clarified that Qivalis is not aiming to compete directly with USDC but rather to provide European banks, businesses, and payment providers with a regulated euro alternative as tokenized finance grows. This would enable institutions to settle transactions in euros rather than needing to convert assets into dollars and back.
As more banks join the initiative, the consortium stands to benefit from the same network effects that have propelled USDC's popularity. "The more banks we have in our consortium, the stronger our network effects become," Sell stated.
Investing in infrastructure
MacKenzie from Agant observed a similar trend in the U.K.
Banks are broadening their focus beyond just digital assets, he said, and are now investing in the necessary infrastructure to link stablecoins with traditional finance for payments, treasury functions, and settlement. Businesses typically prefer to settle in their own currencies rather than first converting to U.S. dollars.
This may drive the development of non-dollar stablecoins, such as Societe Generale's EUR CoinVertible (EURCV), Credit Agricole's EURXT, and Qivalis' upcoming offering. However, existing options may still be inadequate. The success of a stablecoin hinges on how effectively the bank implements it for its customers.
"Anyone can create a stablecoin," remarked Cachinero Vasiljevic from Steakhouse Financial. "But if it’s not adopted, it holds no value. The worth of a stablecoin lies in its network."
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