Banks that explore stablecoin amid fear of losing market sharing, says BitGo executive
While Stablecoin’s competition warmed up to the US regulation, traditional financial institutions were noticed – stronger fearlessness to disappear in digital dollars, said Ben Reynolds, managing the Stablecoins BITGO director, at the Consensus 2025 in Toronto.
Speaking of a discussion on the panel, he said BitGo recently launched Stablecoin-as-a-Service found “incredibly incoming” interest from us and foreign banks who wanted to token deposits or issue stablecoins.
“Many banks are just defending – they are afraid of losing their deposits,” Reynolds said. “They look at the stablecoins and say: How can we not be left behind?”
The produce-bearing versions of Stablecoins and tokenized money market funds have seen rapid growth recently, but still form a small portion of the $ 230 billion Stablecoin market.
Sam Broner of A16Z said that while harvesting stables are a promising segment of the market, their main case of use is for payments and transactions where users do not really care about yields. However, a close-up murder case may be “collateral mobility” —the ability to immediately transfer money to meet obligations on different platforms.
“You can’t do many things with part of a money market fund,” Broner said. “You have lock-up periods, business hours settlement, and contracts that need to be manually reviewed. Crypto gives you a programmatic, without permission to adapt.”
Ani-bearing stablecoins can also be attractive for institutions, Matt Kunke said, crypto product strategist in Blackrock. “If you are a DAO, protocol, or market manufacturer, the transition between crypto handling with an exchange and your broker account is slow and full of friction,” he said. “The stablecoins that carry the yield only reduce that drag.”
However, regulation differences will shape the market. “A tokenized Treasury fund is a security, and an actual stablecoin is not,” he explained. “They deserve different markets.”
Joseph Saldana, chief officer of the financial commission of the Wyoming token, pointed out that the harvest -developing tokens has the power to expand the access of investors compared to each other’s funds that often have the minimum investment limits “I -lock many people.”
“We want to serve underbanked and provide a greater access to the instruments that enjoy us every day,” Saldana said.
