Banks Still Have Time to Shape the Shift to Stablecoin Payments. But Don’t Delay

A new competitive front is forming in financial services: the push to build regulated “stablecoin banks.”

According to S&P Global Market Intelligence’s latest report, digital asset firms, payments companies, and even traditional financial institutions are pursuing banking charters to bring stablecoin issuance, custody, and settlement inside regulated environments.

This shift reflects a move toward stablecoins as operational infrastructure. Enterprises are far more willing to adopt tokenized money when it operates within familiar regulatory frameworks and connects directly to established payment rails.

Why this matters: Stablecoins introduce new ways to move and hold value, particularly in cross-border and institutional contexts. At the same time, they offer a path to enhance existing services. Institutions that align stablecoin capabilities with core offerings — payments, cash management, and liquidity — will be better positioned to maintain relevance as financial infrastructure evolves.

Need to Know:

• Banking charters are becoming strategic assets in the stablecoin economy, enabling firms to combine regulatory credibility with product innovation.
• Banks face pressure on deposits and payments revenue but can reinforce their role by embedding stablecoins into existing commercial offerings.
• Stablecoins are evolving into payment infrastructure, particularly for cross-border transactions, treasury operations, and real-time settlement.
• At least 15 OCC charter applications have been submitted since early 2025 by firms targeting digital asset services — with 11 of those applicants explicitly referencing stablecoins.

Banking Charters Redefine Competitive Positioning

Stablecoins are moving into the regulated core of financial services. Over the past year, firms across payments, crypto, and asset management have applied for federal and state charters that allow them to operate inside the banking perimeter. These charters support stablecoin issuance, reserve management, custody, and settlement — functions that enterprises expect to be handled within supervised institutions.

This shift addresses a longstanding barrier to adoption. Large corporations have shown limited appetite for using stablecoins issued by lightly regulated entities. Payroll, supplier payments, and treasury functions demand reliability, auditability, and compliance. By operating within chartered banks, stablecoins begin to resemble financial utilities rather than experimental tools.

More important: Stablecoins are increasingly integrated as extensions of core banking services. Institutions that treat them as fringe innovations may miss how quickly they are being integrated into core financial workflows.

Payments Models Are Expanding Beyond Traditional Rails

Payments firms are treating stablecoins as a new settlement layer for commercial activity, and their use cases highlight where change is happening fastest.

Cross-border payments, payroll distribution, supplier disbursements, and internal treasury transfers are all being built on stablecoin infrastructure. These applications benefit from faster settlement, lower transaction costs, and continuous availability compared to traditional correspondent banking systems.

Some companies are also embedding stablecoins into platform ecosystems, where transactions occur within controlled environments such as marketplaces, media networks, or digital services. In these cases, stablecoins support both the payment experience and the underlying economics of the platform.

This activity shifts where payment flows originate and settle for banks. When transactions move inside platform ecosystems, the bank’s role can become less visible unless it provides the underlying regulated infrastructure.

What this means: Banks have a choice. They can power these ecosystems from behind the scenes, or they can compete by upgrading their own payment capabilities. Either way, payment models are expanding and stablecoins are part of that expansion.

Stablecoins Move into Core Banking Products

While many applicants are pursuing limited-purpose charters, a smaller group is aiming higher: full-service banks that integrate stablecoins across multiple product lines.

These institutions are designing systems where stablecoins interact directly with payments, treasury management, and correspondent banking. The goal is to combine programmable money with established financial services, allowing clients to manage liquidity and transactions more efficiently.

Regulatory approaches are evolving alongside these models. In certain cases, banks are permitted to hold limited digital assets for operational purposes, such as facilitating blockchain transactions. This reflects a growing recognition that digital assets can support, rather than sit outside, traditional banking functions.

For retail banks, the strategic question is how to integrate stablecoins into existing products. Stablecoins can extend existing services, particularly in areas like cash management and payment processing, where speed and flexibility matter.

Key insight: The institutions that gain traction here are likely to focus less on standalone offerings and more on how stablecoins enhance what customers already use.

Access to Payment Rails Will Shape Market Leaders

Regulation alone does not determine success in this market. Access to payment infrastructure may be the deciding factor.

Direct access to Federal Reserve systems, such as Fedwire, ACH, and FedNow, enables institutions to move funds between traditional accounts and stablecoins efficiently. This capability supports issuance, redemption, and settlement processes that operate at scale.

Without this access, firms rely on intermediary banks, which introduces additional cost and complexity. The ability to connect directly to payment rails provides greater control over liquidity and transaction flows.

Regulatory discussions are beginning to explore more targeted forms of access, including limited-purpose accounts designed for payment-focused institutions. These developments will influence how quickly stablecoin models expand within the broader financial system.

Strategic Implications for Retail Banking

The emergence of regulated stablecoin banks is already reshaping how money moves, particularly in institutional and cross-border contexts.

The most immediate impact will be felt in payments and deposits. Stablecoins introduce new ways to hold and transfer value, potentially shifting balances away from traditional accounts in certain use cases. Cross-border payments, where fees and delays have long been accepted as standard, are especially vulnerable to disruption.

At the same time, stablecoins offer a path to strengthen core offerings. Banks can incorporate them into treasury services, enabling clients to manage liquidity across time zones and currencies with greater precision. They can also enhance payment capabilities, offering near-instant settlement without overhauling existing systems.

Next steps: The competitive landscape will be defined by who integrates stablecoins most effectively into services that customers already use. Retail banking executives can act now in three areas:

• Evaluate where stablecoins can improve existing products, particularly in payments and treasury services
• Identify partnership opportunities with firms pursuing charters or building infrastructure
• Monitor regulatory developments around payment rail access, as these will shape the pace of adoption