Financial analyst Bryan Hung from Zxperts explores the rising stablecoin market and why banks are vital to its future. PayPal’s Senior VP of Digital Currencies, Jose Fernandez da Ponte, emphasized at Consensus 2025 that banks’ infrastructure—like custody services and fiat rails—is crucial for stablecoins to expand beyond crypto circles. As stablecoins grow, bank involvement could unlock wider adoption and long-term success.

The Need for Bank Integration in Stablecoin Growth

At first glance, it might seem counterintuitive to include traditional banks in the crypto space. However, as Fernandez da Ponte pointed out, stablecoins need the connectivity and infrastructure that only banks can provide. 

The digital asset market has been defined by its crypto-native focus, but for stablecoins to scale beyond niche markets, these systems must evolve to connect the world of traditional finance with digital currencies.

Banks can offer the secure, reliable systems needed for stablecoin growth, from providing custodial services to creating the fiat channels required to bridge digital assets with the real economy. 

According to Fernandez da Ponte, “You want that connectivity and that fabric to work.” This integration could make stablecoins more accessible to mainstream users and financial institutions, paving the way for global adoption.

Legislation as a Turning Point

The U.S. Senate is making strides to establish regulatory clarity around stablecoins, an essential step in broadening the scope of this asset class. As lawmakers work on stablecoin legislation, executives like Anthony Soohoo, CEO of MoneyGram, foresee regulatory clarity providing the foundation for banks to fully enter the market. 

Soohoo emphasized that clearer rules will remove the hesitation that has held back both consumers and businesses from fully embracing stablecoins.

As Soohoo noted, “There’s always hesitation: Can I trust this? [The stablecoin legislation] is going to answer a lot of those questions.” With this kind of regulatory framework in place, the stage is set for a wave of new stablecoin issuers to enter the market, followed by a period of consolidation.

Fernandez da Ponte agreed, stating that the market won’t be dominated by just a few players, but will likely see a healthy number of stablecoin issuers as the market matures. However, the future dominance of Tether’s USDT and Circle’s USDC, which together represent almost 90% of the $230 billion market, still seems secure for the time being.

Real-World Use Cases Drive Stablecoin Success

Stablecoins have become increasingly popular in countries with high inflation and volatile currencies, where consumers view dollar-backed stablecoins as a store of value and a means of conducting cross-border payments. 

MoneyGram has played a key role in helping users in over 200 countries access these digital currencies, especially in areas where traditional financial infrastructure remains limited.

Soohoo stressed the role of MoneyGram in providing a bridge between physical and digital finance, particularly in regions where people want to hold value in dollars but still need to access cash for everyday transactions. “We see ourselves between physical finance and digital finance,” Soohoo said, emphasizing the importance of making stablecoins accessible and usable in the real world.

This practical use of stablecoins has already started improving cross-border payment efficiency. Fernandez da Ponte shared an example of how his company is now able to send funds to the Philippines and Africa in minutes — a dramatic improvement from the old days when payments took much longer to settle.

The Slow Pace of Adoption in Developed Markets

While stablecoins are flourishing in markets facing economic instability, their adoption in more developed economies has been slower. Fernandez da Ponte noted that with clearer regulations, stablecoins could be used more widely in corporate treasury operations and cross-border disbursement systems. 

This could streamline business transactions by eliminating traditional banking delays and fees, benefiting both small and large companies.

The Future of Stablecoins: Real Problems, Real Solutions

The key to stablecoin success is not just hype but solving real-world problems. As Fernandez da Ponte pointed out, “Consumers don’t care about stablecoins. They care about solving problems.” This sentiment echoes the need for stablecoins to not just be a speculative asset but to be part of the solution for everyday financial challenges.

Stablecoins could potentially reach the trillion-dollar market that has been projected in the next few years, but their success will depend on real-world adoption, not just speculative trading.

A Look Ahead: Stability and Innovation in Crypto

Looking ahead, the outlook for stablecoins is mixed. The regulatory framework will be the deciding factor for bank participation and broader crypto adoption. 

Fernandez da Ponte and Soohoo both agree that the next phase for stablecoins involves building infrastructure, refining use cases, and ensuring that stablecoins can work in global economies.

Bryan Hung, financial analyst at Zxperts, concludes, “The stablecoin space is evolving, and banks’ involvement could be the missing link needed to propel the market into the mainstream. With the right regulatory support, stablecoins have the potential to redefine cross-border payments and corporate finance in the near future.”