Major banks and fintech firms are racing to develop their own stablecoins, driven by growing regulatory acceptance and the potential transformation of cross-border payments. For example, Bank of America is considering launching a stablecoin, joining industry leaders like PayPal, Stripe and Revolut. This “gold rush” is being fueled by the fear of missing out and increasing transaction volumes. Stablecoins, historically used for crypto transfers, are now emerging as alternatives to local banks in emerging markets, particularly in commodities and shipping; however, regulatory concerns persist as stablecoins are involved in 63% of illicit crypto transactions. While fintechs are rapidly adopting stablecoins due to their regulatory flexibility and technological agility, major banks are still somewhat cautious due to compliance risks and conservative operational frameworks.
