Banco Santander SA, a worldwide banking establishment, is contemplating increasing crypto providers to retail shoppers and probably launching a stablecoin product.
The stablecoin plans are nonetheless within the early phases. According to a Could 29 Bloomberg report, the financial institution is contemplating providing each greenback and euro-pegged fiat tokens.
Giant banking establishments, together with JPMorgan, Financial institution of America, Citigroup and Wells Fargo, are reportedly looking into launching stablecoins, following an industry-positive regulatory shift in the United States beneath US President Donald Trump.
Proponents of stablecoins argue they’re a technique to extend US dollar dominance, improve the velocity of capital in payment systems, financial institution the unbanked, and expose small companies to world capital markets.
Associated: UK FCA requests public comments on stablecoin, crypto custody regulation
Banking {industry} stays divided on stablecoins
Though a number of massive banking conglomerates and monetary providers are mulling issuing dollar-pegged stablecoins, others within the banking {industry} are against the proliferation of such property.
Banking lobbyists and their allies within the US Senate tried to block stablecoin legislation over fears that the digital fiat tokens will erode banking earnings and steal market share from the legacy monetary system. Yield-bearing stablecoins had been a major concern raised by the banking foyer and a few US lawmakers.
“Would you like a stablecoin issuer to have the ability to situation curiosity? In all probability not, as a result of if they’re issuing curiosity, there isn’t any motive to place your cash in a neighborhood financial institution,” US Senator Kirsten Gillibrand said on the DC Blockchain Summit in March 2025.
The senator famous that households and small companies rely on these banking establishments for loans, and that yield-bearing stablecoins might undermine the retail lending market.
New York College (NYU) professor Austin Campbell lately outlined why the legacy banking sector is fearful of yield-bearing stablecoins.
Campbell stated that providing customers rewards within the type of yield disrupts the low-to-no-interest depositor account mannequin on the coronary heart of the fractional reserve system and fashionable retail banking.
Campbell was important of lawmakers pushing laws proscribing the issuance of yield-bearing stablecoins. “The one individuals who profit are billionaires and financial institution executives,” Campbell wrote in a Could 21 X post.
Journal: Unstablecoins: Depegging, bank runs and other risks loom
