Banks ‘very interested' in stablecoin use — Stripe exec
Payment giant Stripe has reportedly held early discussions with banks about potentially integrating stablecoins, signaling growing acceptance in global banking.
After debuting stablecoin-based accounts in 100 countries in early May, Stripe has noticed significant interest in stablecoins — cryptocurrencies tied to fiat currencies like the US dollar — from global banks.
'In the conversations we have with them, they're very interested,' Stripe co-founder and president John Collison said in an interview with Bloomberg News on May 30.
'This is not something that banks are just kind of brushing away or treating as a fad. Banks are very interested in how they should be integrated with stablecoins into their product offerings as well,' he stated. Stablecoins will be a big part of future payments
The growing interest by banks to integrate stablecoins comes from understanding that such cryptocurrencies offer significantly lower transaction costs for payments, including foreign exchange fees by banks.
'It's extremely expensive to do. It's very slow. It takes a matter of days,' Collison said. 'No one is happy with that equilibrium today. And so I think you will see those kind of profit pools come under attack.'
On the other hand, stablecoins offer instant transactions with fees being significantly less than those of FX, Collison said, making a perfect case for payment use globally.
'A lot of our future payment volume is going to be in stablecoins,' Collison said. 'This is, for sure, a big part of our business on a go-forward basis,' he added.
Stablecoins have already made an impact on traditional finance, beating volumes of Visa and Mastercard combined in 2024. Stablecoin growth requires green lights from regulators
While showing interest in stablecoins, some jurisdictions like the United Kingdom might be falling behind in the race to attract stablecoin operators if they don't move faster with regulations, Collison said.
'You have companies that are being set up to serve this industry — if maybe there was a really good regulatory framework, they would choose to base here,' the Stripe exec said, adding:
'Without that certainty they go somewhere else. I think that's the risk that we need to be aware of.'
Collison referred to the European Union's Markets in Crypto-Assets (MiCA) regulation taking force in late 2024, while the UK Financial Conduct Authority is still seeking public feedback on new stablecoin rules as recently as May 28.
The latest insights by Collison align with reports suggesting that banks in the United States have been seeking even clearer guidelines from the government clarifying what they can do in crypto.
On the other hand, despite falling behind in terms of stablecoin regulation, the UK has seen the largest increase in new crypto owners in the past year, outpacing Europe, according to Gemini.
Source: https://cointelegraph.com/news/banks-very-interested-stablecoin-use-stripe-exec
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Crypto Insight
13 hours ago
- Crypto Insight
Michael Saylor shoots his shot for Rogan spot: ‘Let's talk about Bitcoin'
Strategy co-founder Michael Saylor has publicly expressed interest in discussing Bitcoin on the world's most-listened-to podcast, The Joe Rogan Experience. 'Hey @joerogan, let's talk about Bitcoin,' Saylor said in a May 31 X post in response to a Joe Rogan fan account asking, 'Who's one guest you'd love to see Joe Rogan interview that he hasn't had on yet?' Saylor's post triggered excitement among the Bitcoin community Saylor's post prompted speculation within the Bitcoin community. Popular Bitcoiner, The Bitcoin Therapist, said, 'This interview will shatter the internet.' Crypto analyst Kook told their 164,200 X followers that 'Saylor is going to Bitcoin pill Joe Rogan.' Meanwhile, crypto commentator Brandon MacDougal said, 'For the first time ever, I'll be watching a Joe Rogan podcast if Saylor is there.' Rogan has frequently discussed crypto and Bitcoin on his podcast and has made several pro-Bitcoin comments over the years. In an October 2023 episode with OpenAI co-founder Sam Altman, Rogan said that Bitcoin fascinates him the most of all cryptocurrencies. 'The real fascinating crypto is Bitcoin. That's the one that I think has the most likely possibility of becoming a universal viable currency. It's limited in the amount that it can be,' Rogan said. 'I love the fact that it's been implemented,' he added. Although Rogan has yet to respond to Saylor's post, featuring a guest from the Bitcoin industry wouldn't be unfamiliar territory. Even in Bitcoin's early days, Rogan gave the topic airtime on his podcast. Between 2014 and 2016, Bitcoin entrepreneur Andreas Antonopoulos made several appearances on Rogan's podcast when Bitcoin was still trading below $1,000. Saylor's firm Strategy, holds 580,250 Bitcoin, worth $60.47 billion, according to Saylor Tracker. Saylor recently speculated why Bitcoin's price is not yet $150,000. He said holders without a long-term outlook have been selling off while a new cohort of investors are beginning to enter the market. 'I think we're going through a rotation right now,' Saylor said on the Coin Stories podcast with Natalie Brunell on May 9. Source:
Crypto Insight
a day ago
- Crypto Insight
BlackRock's Bitcoin ETF ends 31-day inflow streak with biggest outflow ever
The world's largest asset manager, BlackRock, has ended its 31-day spot Bitcoin exchange-traded fund (ETF) inflow streak with its biggest recorded outflow day since the product launched in January 2024. On May 30, BlackRock's iShares Bitcoin Trust (IBIT) ended its significant inflow streak with its largest daily outflow of $430.8 million, according to Farside data. Before this, IBIT's largest outflow day was on Feb. 26, with $418.1 million in outflows. BlackRock Bitcoin ETF massive outflow day ETF analyst Nate Geraci said in a May 31 X post, 'What a run over the past 30+ days, though.' Geraci highlighted that BlackRock is 'now pushing' approximately $70 billion in Bitcoin holdings since it launched. 'Not sure I have words to describe how ridiculous this is,' Geraci said. Overall, the 11 US spot Bitcoin ETFs recorded net outflows for the second consecutive day on May 30, totaling $616.1 million. The day before, on May 29, the cohort ended its 10-day net inflow streak with an outflow day of $346.8 million, although BlackRock still posted an inflow, drawing attention from several in the industry. Master Ventures founder Kyle Chasse said, 'Every other issuer saw red. BlackRock kept buying…big brain energy right there.' Bitcoin ETF outflows not 'retail panic' 'The sell-off isn't retail panic. It's literally the quiet transfer of supply to the strongest hands,' Chasse added. Meanwhile, Bitcoin's spot price is $103,700, down 2.27% over the past 24 hours, according to CoinMarketCap data. On May 30, Derive founder Nick Forster pointed out to Cointelegraph that there has been a significant amount of spot Bitcoin ETF inflows in recent times, yet it hasn't been reflected in the spot price. 'Despite significant inflows into Bitcoin ETFs, notably over $6.2 billion into BlackRock's iShares Bitcoin Trust in May, Bitcoin's price hasn't experienced a commensurate rise,' Forster said. In the trading week ending May 23 alone, spot Bitcoin ETFs recorded a total of $2.75 billion in inflows. Source:
Crypto Insight
2 days ago
- Crypto Insight
Banks ‘very interested' in stablecoin use — Stripe exec
Payment giant Stripe has reportedly held early discussions with banks about potentially integrating stablecoins, signaling growing acceptance in global banking. After debuting stablecoin-based accounts in 100 countries in early May, Stripe has noticed significant interest in stablecoins — cryptocurrencies tied to fiat currencies like the US dollar — from global banks. 'In the conversations we have with them, they're very interested,' Stripe co-founder and president John Collison said in an interview with Bloomberg News on May 30. 'This is not something that banks are just kind of brushing away or treating as a fad. Banks are very interested in how they should be integrated with stablecoins into their product offerings as well,' he stated. Stablecoins will be a big part of future payments The growing interest by banks to integrate stablecoins comes from understanding that such cryptocurrencies offer significantly lower transaction costs for payments, including foreign exchange fees by banks. 'It's extremely expensive to do. It's very slow. It takes a matter of days,' Collison said. 'No one is happy with that equilibrium today. And so I think you will see those kind of profit pools come under attack.' On the other hand, stablecoins offer instant transactions with fees being significantly less than those of FX, Collison said, making a perfect case for payment use globally. 'A lot of our future payment volume is going to be in stablecoins,' Collison said. 'This is, for sure, a big part of our business on a go-forward basis,' he added. Stablecoins have already made an impact on traditional finance, beating volumes of Visa and Mastercard combined in 2024. Stablecoin growth requires green lights from regulators While showing interest in stablecoins, some jurisdictions like the United Kingdom might be falling behind in the race to attract stablecoin operators if they don't move faster with regulations, Collison said. 'You have companies that are being set up to serve this industry — if maybe there was a really good regulatory framework, they would choose to base here,' the Stripe exec said, adding: 'Without that certainty they go somewhere else. I think that's the risk that we need to be aware of.' Collison referred to the European Union's Markets in Crypto-Assets (MiCA) regulation taking force in late 2024, while the UK Financial Conduct Authority is still seeking public feedback on new stablecoin rules as recently as May 28. The latest insights by Collison align with reports suggesting that banks in the United States have been seeking even clearer guidelines from the government clarifying what they can do in crypto. On the other hand, despite falling behind in terms of stablecoin regulation, the UK has seen the largest increase in new crypto owners in the past year, outpacing Europe, according to Gemini. Source:
