Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Major global banks and FinTech companies are hastening the development of their own stablecoins, seeking to capture a portion of the rapidly changing cross-border payments market, which is undergoing a transformation influenced by cryptocurrencies.
According to analysts from the Financial Times, the stablecoin market is witnessing a “gold rush,” with increasing interest from prominent financial institutions. Notable entrants into this space include Bank of America, Stripe, PayPal, Revolut, Standard Chartered, among others.
The growing interest in stablecoins is largely attributed to a change in regulatory perspectives. After years of opposition, including the prohibition of Meta’s Libra project, U.S. and European regulators are now working on establishing regulatory frameworks. The U.S. Congress is currently discussing legislation to set stablecoin standards, while the European Union has already introduced compliance requirements for stablecoin issuers. The U.K. is expected to conduct market consultations later this year.
Authors from the Financial Times highlight that financial institutions are broadening the application of stablecoins beyond the cryptocurrency sector:
Related Posts
- SpaceX utilizes USDT to repatriate funds from the sale of Starlink satellites in Argentina and Nigeria;
- ScaleAI provides digital token payments to its global workforce;
- Standard Chartered announced the launch of a Hong Kong dollar-pegged token within Hong Kong’s new regulatory framework.
The interest of FinTech companies in stablecoins is further evidenced by Stripe’s recent acquisition of the Bridge platform for $1.1 billion. PayPal intends to expand the use of its stablecoin PYUSD for cross-border transactions by 2025. However, in the face of industry giants, new entrants will encounter significant challenges. According to Visa, the transaction volume of PayPal’s stablecoin in February 2025 was approximately $1.4 billion, while Tether recorded $478.5 billion in transactions.
Currently, the total amount of stablecoins issued stands at $211.6 billion, with $151.7 billion from Tether and $57.2 billion from Circle. In February 2025, the transaction volume involving stablecoins reached $710.5 billion, representing a 36% increase compared to the previous year. The number of unique addresses utilizing stablecoins has reached 35 million.
The overall transaction volume with stablecoins in 2024 reached $27.6 trillion, exceeding the combined payment system volumes of Visa and Mastercard by 7.68%. Analysts anticipate that in the near future, stablecoins may compete with credit and debit cards, with traditional banks planning to challenge Tether and Circle in the stablecoin arena.
The message Banks and FinTech Companies Accelerate Launch of Their Own Stablecoins first appeared on CoinsPaid Media.
