Latest How Tradfi Banks Are Advancing New Stablecoin Models 2025
Stablecoins are shifting from crypto-native experiments to instruments embedded in existing banking and payment infrastructure.
Traditional finance institutions across the US, Europe and Asia are moving into stablecoins now that regulatory uncertainties are easing.
Payment companies like PayPal, Mastercard and Visa are either launching stablecoins, integrating stablecoin settlement into payment systems or building the infrastructure to support them.
The race is not limited to corporations but is also developing at the banking level. In early October, a group of major international banks, including Goldman Sachs, Deutsche Bank, Bank of America, BNP Paribas and Citi, formed a consortium to explore issuing a “reserve-backed” digital money on public blockchains.
Development has accelerated after the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was signed into law by US President Donald Trump on July 18. Different entities are choosing different models, from fully collateralized retail stablecoins to tokenized deposits and wholesale settlement tokens.
Before the GENIUS Act, the primary path for US stablecoins was New York’s trust charter regime. PayPal followed that route in August 2023 by issuing PayPal USD (PYUSD) through Paxos, which is licensed by the New York State Department of Financial Services.
Wisconsin-based Fiserv announced FIUSD in June 2025 and plans to integrate it into banking and merchant settlement systems by year-end, using Paxos and Circle infrastructure. After GENIUS was signed, Fiserv expanded its stablecoin strategy by partnering with the Bank of North Dakota on the “Roughrider Coin” interbank settlement pilot.
Mastercard joined Paxos’ Global Dollar Network in June 2025 to enable stablecoin settlement across its merchant and payment rails, expanding support for PYUSD, USDC and FIUSD. Visa began settling USDC on Ethereum in 2021 and extended that to Solana in 2023, allowing processors such as Worldpay and Nuvei to settle obligations directly in stablecoin rather than by wire.
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Custody and trust banks have moved to secure the asset-servicing layer. BNY Mellon now custodies stablecoins issued by Ripple and Société Générale.
Source: CoinTelegraph
