As Tether prepares to announce record profits exceeding $10 billion for 2024, global banking giants are accelerating their positioning in the stablecoin market. From Société Générale to Deutsche Bank, traditional financial institutions are multiplying initiatives to avoid missing out on this crypto revolution.
Banks at the forefront of stablecoin innovation
The meteoric success of Tether Holdings in 2024 does not go unnoticed. By recording net profits exceeding $10 billion, Tether, issuer of the stablecoin USDT, has become a key player in the crypto ecosystem.
Faced with this performance, many banks, particularly in Europe and Asia, are actively preparing their entry into the stablecoin market.
In Europe, ambitious initiatives are emerging. Société Générale, through its subsidiary SG-Forge, has launched a stablecoin backed by the euro, now accessible to individual investors.
In Germany, the Oddo BHF bank is developing a stablecoin, while the British Revolut is considering a similar project. DWS, a subsidiary of Deutsche Bank, also plans to launch in 2025, as does BBVA in Spain, which is collaborating with Visa on a pilot project.
In Asia, the enthusiasm is just as palpable. A consortium led by Standard Chartered is testing a stablecoin backed by the Hong Kong dollar. This dynamic reflects growing adoption and a desire to meet the needs of the global market.
Global expansion marked by regulatory challenges
In the United States, despite a marked interest in stablecoins, large banks are adopting a more cautious approach, conditioned by the evolution of the regulatory framework. JPMorgan Chase, a pioneer with its JPM Coin token, is now considering coexistence between traditional stablecoins and its own deposit tokens.
According to Naveen Mallela of Kinexys, the bank's digital assets unit, stablecoins issued by banking institutions will become commonplace within three years.
The necessary technological infrastructure is gradually being put in place, notably with Visa's tokenization network planned for 2025. Cuy Sheffield, head of Visa's crypto division, points to growing demand from Asian and South American financial institutions.
However, concerns remain. The ECB warns of potential risks to financial stability, including the possible erosion of traditional bank deposits. In the United States, questions regarding the nature of the reserves guaranteeing stablecoins and their insurance coverage remain unanswered.
In short, the enthusiasm of traditional banks for stablecoins, catalyzed by the resounding success of Tether, marks a decisive turning point in the evolution of the global financial system. However, the success of this transition will largely depend on the ability of regulators to establish a clear and balanced framework, enabling innovation while guaranteeing financial stability.
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