From Skepticism to Acceleration: TradFi Turns to Stablecoins
The adoption of stablecoins is no longer limited to crypto-native companies. With the passage of the GENIUS Act in the U.S., which provides a regulatory framework for fiat-backed stablecoins, traditional financial giants are now actively investing in blockchain-based payment infrastructure.
Major banks like JPMorgan, Citi, Bank of America, and Wells Fargo are building or partnering on stablecoin settlement networks. Visa and Mastercard are piloting transactions on Ethereum, Solana, and other chains, signaling that blockchain is being integrated into the core of global payment systems.
Why Are Banks Moving So Fast?
Key forces behind this shift include:
- Regulatory clarity: Legal frameworks (e.g. GENIUS Act) eliminate compliance uncertainty
- Mature technology stack: Wallets, APIs, and on-chain settlement rails are enterprise-ready
- Growing demand: Businesses and freelancers need instant, low-cost cross-border payments
- Competitive pressure: Wallets and crypto-native card services are rapidly gaining market share
Rebuilding the Payment Stack
Stablecoins aren’t replacing banks—they’re redefining the bank’s role.
| Traditional Role | Disintermediated By | New On-Chain Role |
|---|---|---|
| Settlement Layer | Peer-to-peer token transfers | Stablecoin clearing engine |
| Account System | Wallet-based user control | Multisig custodial hybrids |
| Fund Tracking | Blockchain transparency | Real-time compliance auditing |
Banks are moving from closed, centralized models to open, on-chain interoperable systems.
Can TradFi and Web3 Coexist?
A dual-rail future seems likely:
- Fiat and stablecoins as parallel settlement units
- Banks and wallets sharing payment identity roles
- U Cards, virtual cards, and wallet-based payments coexisting
Banks won’t disappear—but they’ll need to speak the language of Web3.
