Stablecoin Regulation Has Arrived—What’s Next for Banks?

Over the past 12 months, stablecoins have grown at an unprecedented pace worldwide, with transaction volumes up 63% year-over-year. Yet U.S. banks have not advanced at the same speed.

One of the main reasons is the absence of clear, standardized guidelines. Until recently, fundamental questions remained unanswered: What exactly is a stablecoin? Who is authorized to issue them? Which authority should regulate them? This uncertainty pushed many financial institutions to the sidelines, as launching stablecoin initiatives without regulatory clarity represented significant operational and compliance risks.

That reality is changing. With the introduction of the GENIUS Act (Guaranteeing Essential National Infrastructure in U.S. Stablecoins), the U.S. now has its first legal framework designed to reduce those risks and provide both legal and operational certainty.

As a result, banks, payment providers, and other financial players are beginning to participate more actively in the stablecoin space. With regulatory risk lowered, the conversation is shifting from whether to adopt stablecoins to how to do so strategically.

From Uncertainty to Opportunity

Stablecoins promise clear value:

• Faster payments with 24/7 settlement.

• Lower operating costs compared to legacy rails.

• Greater efficiency across treasury and transaction management.

For banks, the key is not adopting the technology because others are doing so, but identifying use cases that deliver real business impact.

• Internal efficiency: JPMorgan, for instance, already uses blockchain-based digital coins internally to move money globally in real time. This reduces friction, improves liquidity management, and often lowers costs compared to traditional systems.

• B2B payments: Current cross-border payment systems can take days and carry high fees. Stablecoins enable faster, cheaper transactions between global suppliers, partners, and clients.

• Retail transfers: Consumers are familiar with tools like Zelle for instant domestic payments. Stablecoins extend that logic internationally, offering lower-cost remittances with greater flexibility.

Unlike volatile cryptocurrencies, stablecoins are designed to maintain a 1:1 redemption ratio backed by reserve assets, making them a practical and secure instrument for financial institutions.

Building the Right Infrastructure

The challenge for banks is integration. Most current payment platforms were built for fiat currencies like the U.S. dollar. Incorporating stablecoins requires rethinking the technology stack and ensuring that digital and traditional money can coexist securely.

Key steps include:

1. Identify the right technology components aligned with your core banking systems and chosen use cases.

2. Decide build vs. partner: Evaluate whether to develop solutions internally or through fintech partnerships—ensuring seamless integration into existing operations.

3. Anticipate evolving regulations: The GENIUS Act is just the beginning; future federal or state-level requirements will likely emerge. Flexibility is essential.

4. Scale design: Even small pilots must be architected to support growth in both transaction volume and value.

The Bigger Picture

Stablecoins occupy a unique position: they bridge traditional money backed by real assets with emerging blockchain-based digital finance.

But the real differentiators will not be the banks that rush in, but those that:

• Analyze their opportunities rigorously.

• Define clear, high-value use cases.

• Build flexible, secure infrastructure from the ground up.

WAU’s Perspective

At WAU, we are actively exploring how digital assets such as stablecoins can be integrated safely and efficiently into traditional banking. Through our digital transformation projects, we help financial institutions:

• Identify real-world use cases that reduce operational friction and create measurable business value.

• Pilot interoperable infrastructure that supports both fiat and digital currencies.

• Design scalable architectures aligned with current and future regulations.

We believe the future of banking is not about simply adopting what’s new, but about doing so strategically, pragmatically, and with a long-term vision.

👉 Is your organization exploring stablecoin adoption? Which use cases do you see driving the greatest impact?