US banks have been exploring the launch of a joint stablecoin initiative.
Greg Waisman, Chief Operating Officer at Mercuryo, a payment infrastructure platform in the digital token space has noted:
“The prospect of a consortium of leading US banks entering the cryptocurrency market with a joint stablecoin demonstrates how crypto native products may now be driving the evolution of financial markets. Stablecoins are a valuable source of liquidity in the digital token space supporting a variety of different projects and protocols. On the Mercuryo platform, we’ve witnessed increasing stablecoin volumes over the past three or four weeks as the market enters a more bullish phase. Stablecoins function as a safe harbour in times of market turbulence, enabling participants to reenter at opportune moments. As more stablecoins are launched, volumes may rise far beyond the wildest predictions made at the beginning of this decade.”
Indeed, stablecoins have emerged as a widely-used form of digital currency that may be used to settle cryptocurrency trades. Stablecoins are also increasingly being used to make payments and are being used for remittances as well.
According to industry participants and market analysts, stablecoins may eventually become a multi- trillion dollar market. Banking institutions in the US are also preparing to integrate stablecoins into their offerings.
As covered recently, Fifth Third Bancorp (NASDAQ: FITB), a U.S. regional bank headquartered in Cincinnati, is increasing its focus on cryptocurrency and digital assets, leveraging five years of exploration to expand its offerings.
With over $200 billion in assets and primary oversight from the Office of the Comptroller of the Currency (OCC), the bank is set to potentially deepen its involvement in the crypto sector, spurred by favorable regulatory developments and growing institutional interest.
This strategic pivot marks a significant step for the institution, which has reportedly been carefully studying the digital asset space since 2020.
According to Ben Hoffman, Fifth Third’s chief strategy officer, the bank began building relationships with crypto firms about five years ago but adopted a conservative approach, awaiting clearer regulatory guidelines before making substantial investments.
That clarity has now emerged, particularly under policies shaped during the Trump administration, which have encouraged banks to engage more confidently with digital currencies.
The OCC’s recent guidance, allowing banks to provide crypto-asset custody and engage in certain stablecoin activities without prior approval, has further encouraged Fifth Third’s plans.