Which Banks Have Not Yet Entered the Stablecoin Space? An In-Depth Analysis of Traditional Financial Institutions' Crypto Strategies

Bank Choices in the Wave of Stablecoins: Why Some Institutions Opt to Wait and See With the rapid development of the cryptocurrency market, stablecoins, as a crucial bridge connecting traditional finance and digital assets, are garnering widespread attention from global financial institutions. However, in this digital currency revolution, not all banks are eager to launch their own stablecoin products. Traditional financial giants such as JPMorgan Chase (JPMorgan Chase), Wells Fargo (Wells Fargo), and Bank of America (Bank of America) have yet to publicly issue their own stablecoins. Behind this strategic choice lie multiple considerations regarding regulatory policies, market risks, and technological maturity. Understanding why these banks have not yet entered the stablecoin space not only helps us grasp current fintech trends but also offers a glimpse into traditional financial institutions' genuine attitudes toward blockchain technology. Analysis of the Current State of Stablecoin Strategies Among Major Global Banks Currently, the global banking industry's attitude toward stablecoins shows a clear divergence. On one hand, digital asset-friendly banks like Signature Bank (Signature Bank) and Silvergate Bank (Silvergate Bank) have long been actively involved. On the other hand, most mainstream commercial banks remain cautious. Citibank (Citibank) has repeatedly discussed the potential of digital currencies but has not launched an official stablecoin; Goldman Sachs (Goldman Sachs) primarily focuses on institutional-grade digital asset custody services rather than directly issuing stablecoins; Barclays (Barclays) tends to explore the field of Central Bank Digital Currencies (CBDCs). This differentiated strategic choice reflects varying assessments among banks regarding risk tolerance, technological capabilities, and regulatory expectations. Regulatory Uncertainty: The Biggest Obstacle for Banks Launching Stablecoins The ambiguity of the regulatory environment is a key factor hindering traditional banks from issuing stablecoins. In the United States, although the Office of the Comptroller of the Currency (OCC) has explicitly allowed federal banks to use stablecoins for payment activities, jurisdictional disputes between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) remain unresolved. In Europe, the MiCA regulation establishes a framework for crypto assets, but specific implementation details are yet to be perfected. This regulatory grey area makes risk-averse traditional banks prefer to wait and see, awaiting clearer legal frameworks rather than risking the launch of stablecoin products that might face compliance issues. Technological Challenges and Immature Infrastructure Bank-grade stablecoins require the construction of technological infrastructure that meets financial industry standards, including blockchain selection, smart contract auditing, cross-chain interoperability, and real-time settlement systems. Currently, most blockchain networks still struggle to fully meet bank-grade requirements in terms of transaction throughput, privacy protection, and compliance monitoring. Additionally, technical challenges such as seamless integration with traditional financial systems, automation of Anti-Money Laundering (AML) and Know Your Customer (KYC) processes, and 7x24 operational support necessitate more thorough technical preparation and testing cycles before banks can launch stablecoins. Considerations of Business Models and Profit Prospects From a business perspective, the appeal of stablecoins to traditional banks is not entirely clear. While stablecoins may generate new fee income, their issuance and operational costs are also significant. Banks need to weigh the potential conflicts between stablecoin businesses and traditional payment services (such as wire transfers and credit cards) and assess their impact on existing profit models. Moreover, the potential for financial disintermediation facilitated by stablecoins raises concerns among some banks about the stability of long-term customer relationships. These business considerations require banks to more clearly evaluate the long-term profit models of stablecoins before committing substantial resources. Complexity of Risk Management and Systemic Impact As highly regulated financial institutions, banks have extremely stringent requirements for risk management. The new risks introduced by stablecoins include credit and liquidity risks in reserve asset management, technological risks from smart contracts, market risks from price anchor failures, and regulatory risks from cross-border flows. For systemically important banks, the potential systemic risk impact of stablecoins requires even more prudent assessment. The complexity of managing these risks necessitates the establishment of comprehensive risk control frameworks before banks can launch stablecoins, which demands time and professional resources. Future Outlook: Possible Pathways for Bank Stablecoin Development Although most mainstream banks have not yet launched stablecoins, this landscape may change within the next 1-3 years. As regulatory frameworks gradually clarify and technological standards are established, we might see more banks entering the stablecoin space through collaborative models, such as partnering with existing stablecoin issuers or forming banking alliances to jointly issue stablecoins. Additionally, the development of Central Bank Digital Currencies (CBDCs) may provide new opportunities and infrastructure support for banks issuing stablecoins. The stablecoin strategies of the banking industry will continue to evolve, becoming a key factor in shaping the future digital financial ecosystem. Conclusion: Bank Digital Transformation Balancing Caution and Innovation The relative lag of traditional banks in the stablecoin space reflects the balance financial institutions strike between innovation and stability. This cautious attitude is not a rejection of innovation but rather an orderly progression ensuring financial stability and compliance. As technology matures, regulations clarify, and market demand grows, banks that have not yet launched stablecoins are likely to change their strategies. For investors and industry observers, monitoring shifts in these banks' attitudes will provide an important window into understanding the digital transformation of the entire financial system. In this rapidly changing era, every choice made by the banking industry is redefining the form and circulation of future currency.