31 Oct, 2025

Stablecoins Trigger a “Arms Race” Among Traditional Financial Giants

If 2020–2022 was a period of “trial phase” and 2023–2024 one of “exploration,” then 2025 has marked the era of full-speed adoption for stablecoins. Their growth has far outpaced expectations: annual stablecoin transaction volumes surged from a negligible $3.3 billion in 2018 to $18.4 trillion in 2024. This milestone not only signifies stablecoins’ evolution from niche experiments to core global payment rails but also surpasses the annual transaction throughput of legacy payment giants Visa ($15.7 trillion) and Mastercard ($9.8 trillion).Several high-profile developments in the past month have put this narrative in the spotlight:1️⃣ Citi formally partnered with Coinbase to expand digital asset payment capabilities for institutional clients.2️⃣ Nine major European banks formed a Euro stablecoin consortium, targeting issuance by 2026.3️⃣ Western Union announced plans to launch the USD-pegged stablecoin USDPT on Solana in 2026, with Anchorage Digital Bank handling issuance and custody.4️⃣ Visa disclosed settlement support for four stablecoins across four new blockchains.5️⃣ Mastercard aims to acquire stablecoin/crypto infrastructure firm Zero Hash for $1.5–2 billion and had previously competed with Coinbase over BVNK.Together, these developments reveal a clear trend: in the race to dominate the future of finance, traditional incumbents are unwilling to lag behind, actively transitioning their core businesses — from payment networks to cross-border settlement — onto programmable blockchain infrastructure.Banks: Stablecoins vs Tokenized DepositsAs traditional banks embrace digital assets, they face two distinct paths: stablecoins or tokenized deposits.Initially, Citi CEO Jane Fraser emphasized tokenized deposits over popular market stablecoins — not because stablecoins are inferior, but because tokenized deposits are “comfortable” for banks:🔷 Tokenized Deposits (Banks’ “Internal Rail”): These are essentially digital representations of customers’ fiat deposits. Think of it as issuing a digital pass for existing bank accounts. Fully regulated under central bank oversight, they are safe, compliant, and seamlessly integrate with legacy clearing systems, enabling 24/7 settlement between banks. For banks, this is the lowest-friction, most regulation-friendly approach.Yet having only an “internal rail” is insufficient.🔷 Stablecoins (Banks’ “External Rail”): To interact with the broader crypto ecosystem and public blockchains like Ethereum, banks must use stablecoins — universal tokens in the decentralized financial world.Citi’s strategy is therefore smart: while favoring tokenized deposits, it swiftly announced the Coinbase partnership.The dual-track approach serves one ultimate goal: whether the future money network runs on public chains or bank rails, traditional banks must control both forms of “digital money” to remain central as trusted clearing hubs in the emerging financial system.In Europe, nine banks (UniCredit, ING, Banca Sella, KBC, Danske, DekaBank, SEB, CaixaBank, Raiffeisen) are jointly advancing a Euro stablecoin, establishing a company in the Netherlands and seeking an e-money license under MiCA. The target: launch in H2 2026, emphasizing compliance, 1:1 reserves, and public-chain usability. The objective is clear: create a local digital payment rail to counterbalance the influence of US dollar stablecoins in Europe. This is a bank-led infrastructure play designed to mirror public-chain ecosystems.Western Union: Using Stablecoins to Upgrade the “Cash Endpoint”Unlike banks, which focus on improving internal clearing and settlement efficiency, Western Union sees stablecoins as a core component of its cross-border retail remittance infrastructure.As one of the world’s largest remittance providers, Western Union’s strength lies not in advanced fintech, but in its global network of physical cash points. Particularly in emerging markets, it controls the “last mile” where digital funds convert to cash, serving as a lifeline for unbanked users.Western Union’s strategy is straightforward: make stablecoins the “highway” of its remittance rails, integrating them with its cash network to create a smooth closed loop.1️⃣ Channel Selection: Partner with Anchorage to issue USDPT, running on Solana for high throughput and low fees — critical for high-frequency, low-value retail remittances.2️⃣ Network Construction: Launch a Digital Asset Network to ensure seamless flow: external wallet → stablecoin remittance → local cash pickup or deposit.3️⃣ User-Centric Execution: For cash-reliant users in emerging markets, priority is not blockchain per se, but immediate settlement, nearby cash access, and low fees. By hiding the complexity of blockchain infrastructure, Western Union leverages stablecoins to reinforce its dominance in global retail remittances.Card Giants: Connectors vs AcquirersVisa and Mastercard accelerate stablecoin integration from the perspective of global card networks, but with different strategies:1️⃣ Visa — Evolving into a “Multi-Chain Settlement Router”Visa increasingly positions itself as a multi-chain settlement network operator. This fiscal year, it added settlement support for four blockchains and four stablecoins, redeemable in 25+ fiat currencies. Transaction volumes linked to stablecoins have surged YoY, highlighting Visa’s core competence: bridging traditional bank accounts with on-chain digital funds, enabling seamless cross-chain settlement for banks, merchants, and wallet users.2️⃣ Mastercard — Fast-Track AcquisitionMastercard takes a more aggressive approach, acquiring infrastructure to rapidly secure time in the “on-chain payment race.” Its $1.5–2 billion bid for Zero Hash, coupled with deep discussions to acquire BVNK, shows a strategy focused on internalizing compliance custody, wallet routing, fund anchoring/redemption, and on-chain risk controls quickly, then scaling these capabilities across its global issuer, acquirer, and merchant network.In short: Visa excels at connecting, Mastercard at rapidly controlling infrastructure. Both recognise stablecoins as central to future payments.Risks RemainEven as giants race down the stablecoin track, formidable challenges persist. For banks and card networks, the main hurdles are not technical, but non-technical regulatory and operational barriers:1️⃣ Dollar Stablecoin “Intrusion”: Global stablecoin expansion touches a sensitive nerve: monetary sovereignty. A USD-pegged stablecoin dominating a small economy could erode central bank control, prompting regulatory pushback. This explains Europe’s cautious, bank-led Euro stablecoin path.2️⃣ Trust Stress Test — On-Chain Resilience: Translating “bank-grade robustness” onto blockchain demands readiness for trust crises and technical shocks:Run & Reserve Risk: Can stablecoins withstand mass redemptions?On-Chain Crises: Platforms must handle liquidity shortages, reserve volatility, network congestion, and cyberattacks.3️⃣ Compliance “Last Mile”: For models like Western Union’s, integrating blockchain efficiency into cash-centric flows requires navigating AML, forex controls, and multi-jurisdiction licenses.The operational and regulatory complexity far exceeds mere blockchain integration — explaining why Visa, Mastercard, and Citi opt for collaboration or strategic acquisitions rather than going it alone.ConclusionLooking at recent industry developments, the stablecoin wave is less about crypto “victory” and more a silent revolution in financial infrastructure. As “accounts + stablecoins” operate in parallel, users no longer perceive on-chain vs off-chain distinctions — only faster settlements, lower costs, and smoother experiences.Ultimately, the game comes down to familiar variables: network scale, fee curves, merchant acquisition, and risk & compliance execution. By Q4 2025, traditional finance is no longer standing on the sidelines.

29 Oct, 2025

Visa Adding Support for Four Stablecoins on Four Unique Blockchains

In an effort to increase the ways payments can be settled and money moved across the Visa network, the debit and credit card giant plans to support multiple stablecoins."We are adding support for four stablecoins, running on four unique blockchains, representing two currencies, that we can accept and convert to over 25 traditional fiat currencies," Visa's CEO Ryan McInerney said during a fourth-quarter earnings call on Tuesday.Additionally, McInerney highlighted that "in Q4 stablecoin-linked Visa card spend quadrupled versus a year ago."Like many other traditional financial institutions and payments companies, Visa sees increased potential for stablecoins, especially after the U.S. created regulatory certainty as it relates to USD-pegged tokens. While Visa has forged partnerships with crypto native firms in the past, in September, the company launched a pilot to test stablecoins for cross-border payments, providing businesses with a new way to transfer money abroad more quickly.McInerney also said Tuesday that Visa has, since 2020, "facilitated over $140 billion in crypto and stablecoin flows." He added that included users leveraging Visa credentials to purchase more than $100 billion in crypto and stablecoin assets."We now have more than 130 stablecoin-linked card issuing programs in over 40 countries," McInerney said on the call.Visa's CEO also noted that his company has started enabling banks to mint and burn their own stablecoins.

27 Oct, 2025

Bank of Laos Targets Stronger Oversight, Digital Banking in New Five-Year Strategy

The Bank of Laos (BOL) has unveiled a new five-year plan (2026–2030) aimed at strengthening the national financial system and ensuring long-term monetary stability.During the bank’s Fifth Party Congress held on 26 October at the Banking Institute Conference Hall in Vientiane, Bounkham Vorachit, Secretary of the Party Committee and Governor of the Bank of Laos, outlined the strategic direction under the theme:“Strengthen Party leadership to ensure monetary stability, develop a resilient financial system, and modernize financial services for inclusive growth.”According to the governor, the new plan will focus on enhancing financial management, strengthening leadership and accountability, and promoting digital banking innovations to improve efficiency and inclusion.The plan builds on the bank’s previous five-year strategies centered on financial stability and modernization, responding to recent challenges that underscore the need for stronger oversight and transparency.SUBHED: Banking Sector Corruption Highlights Need for ReformThe importance of these reforms has become even more evident in light of recent issues within the banking sector. Persistent governance gaps and corruption cases have tested public trust and highlighted the urgency of strengthening oversight across financial institutions.In 2024, widespread corruption within Laos’ banking sector led to losses of nearly LAK 1.6 billion (approximately USD 74,000), with only LAK 137.43 million (about USD 6,300) recovered, according to the Bank of Laos.The bank reported 21 corruption cases last year, including two within BOL, three at Nayoby Bank, and one at BCEL, with the remainder linked to ongoing investigations at the Agricultural Promotion Bank and Nayoby Bank.A total of 167 individuals faced disciplinary action, including 11 BOL staff, while three officials were suspended pending further inquiry.SUBHED: Expanding Digital and Cross-Border ConnectivityAgainst this backdrop, the Bank of Laos is also accelerating its modernization agenda. By embracing digital transformation and cross-border connectivity, the bank aims to create a more transparent and efficient financial system that supports economic growth and regional integration.As part of its modernization drive, Laos has expanded cross-border QR code payment systems with  Thailand, Cambodia, Vietnam, South Korea, and China, allowing seamless cashless transactions for tourists and businesses. This initiative aims to boost regional financial integration and support digital economic growth.Delegates at the congress also discussed measures to make the banking sector more resilient, efficient, and capable of supporting national economic development.Deputy Prime Minister Saleumxay Kommasith, who attended the congress, praised the achievements of the outgoing leadership and urged the new committee to continue building a stable, modern, and transparent financial system that underpins sustainable growth.Following party procedures, delegates elected the Fifth Party Executive Committee, comprising 17 members, including five in the Standing Committee.Bounkham Vorachit was re-elected as Secretary, Vathana Dalaloy as Deputy Secretary, and Aloun Bounyong as Chair of the Party Inspection Committee.

24 Oct, 2025

Stablecoin QR Payments: Exploring the “Last Mile” of the Crypto World

The convergence of stablecoin payments and QR code systems is quietly transforming the underlying logic of modern payment infrastructure. Only a few years ago, people were still debating whether digital currencies could ever enter daily life. Today, in certain countries, scanning an ordinary merchant QR code may in fact trigger a payment settled in crypto stablecoins behind the scenes. From Southeast Asia to South America, QR-based stablecoin payment systems are taking shape.Vietnam and the Philippines: Financial InclusionIn Vietnam and the Philippines, the promotion of stablecoin QR payments is closely tied to the goal of financial inclusion. Both countries have limited banking coverage, leaving a large proportion of low- and middle-income citizens reliant on e-wallets for everyday payments. According to World Bank data, over 30% of Vietnamese adults and nearly 44% of Filipinos remained unbanked in 2023.In June 2025, Bitget Wallet announced the integration of its crypto payment feature with the national unified QR code systems of both countries—VietQR and QR PH—enabling users to pay directly with stablecoins such as USDT or USDC.This initiative is far from a symbolic “crypto-payment concept”; it represents a genuine embedding of blockchain liquidity within local financial networks. When consumers scan to pay, the system automatically converts stablecoins into local fiat currency in the background. Merchants neither handle crypto assets nor bear exchange rate risks. As Bitget noted in its official blog, the goal is to make “the crypto payment experience indistinguishable from a regular e-wallet transaction.”Vietnam’s payment environment provides fertile ground for such innovation. VietQR, launched by the National Payment Corporation and major banks, standardizes QR code payments nationwide across banks and wallet providers. When stablecoins like USDT enter the VietQR ecosystem, they effectively bridge blockchain liquidity with the national financial network. Users initiate payments through crypto wallets, settle via stablecoins, and merchants still receive VND-denominated funds. For regulators, this structure preserves control over local currency clearing while allowing international liquidity to flow more efficiently into retail payments.Brazil: Inflation Hedging and System IntegrationBrazil’s core motivation lies in hedging inflation and integrating global crypto capital. Since 2024, inflation has remained above the target band, and the Brazilian real (BRL) has increasingly been substituted by digital assets in trading. By allowing users to pay via stablecoins like USDT or USDC through QR codes, the government is, in effect, incorporating market-adopted crypto assets into its regulatory perimeter—turning them into supervised payment instruments.Brazil’s PIX system, known for instant transfers, has already replaced much of the country’s cash transactions. In September 2025, Aeon Pay announced that its “Crypto Scan-to-Pay” service now supports stablecoin payments via PIX QR codes. Users can scan and pay directly with USDT or USDC, with automatic real-time conversion into BRL in the background.Because PIX covers virtually all banks and merchant terminals, stablecoins can now achieve QR-based, on-the-spot settlement across the broadest segments of the economy. Aeon Pay emphasizes that its system complies with central bank AML and fund-traceability requirements, ensuring all conversion and clearing flows are fully auditable.Thailand: Tourism Economy and FX OptimizationMeanwhile, Thailand—buoyed by its vibrant tourism sector—is exploring similar mechanisms. According to policy analysis from Silk Legal, Thailand’s Tourist DigiPay program enables visitors to pay merchants by converting crypto into Thai baht through QR code transactions.The logic is straightforward: Thailand’s foreign-exchange settlement system still involves friction for small-value transactions. Tourists often face high fees and opaque exchange rates when converting cash or using foreign cards. Stablecoin QR payments bypass traditional FX intermediaries, using smart contracts to execute instant conversions and credit merchants directly in local currency.The key innovation is not the legalization of crypto trading itself, but the integration of stablecoins into Thailand’s unified QR code network. Tourists can top up certified wallets with USDT upon arrival; the system then auto-converts the amount into THB equivalents and clears through local banks and payment gateways. This model maintains full regulatory compliance while reducing foreign-exchange friction—bringing stablecoins into practical, real-world use within the tourism economy.Singapore: Compliance Meets InnovationWhile many of these examples emerge from emerging markets, Singapore in September 2025 became the first highly developed financial hub to enable stablecoin QR payments within a regulated ecosystem.According to Finextra and Channel News Asia, OKX Pay partnered with StraitsX to launch QR payment functionality supporting USDC and USDT. Users can scan the SGQR, Singapore’s national unified QR code, across GrabPay’s merchant network to make purchases.Behind the scenes, the system converts USDC or USDT into XSGD, a stablecoin fully pegged to the Singapore dollar (SGD), and merchants receive payment in fiat SGD.This model marks the first implementation of retail stablecoin payments in a strictly regulated jurisdiction. The Monetary Authority of Singapore (MAS) had already introduced a Stablecoin Regulatory Framework in 2023, requiring issuers to maintain high-quality, liquid reserves and undergo independent audits. These safeguards provide both legal and technical assurance, enabling stablecoin QR payments to function reliably at scale.Convergence of QR Codes and Stablecoins: The New InterfaceAlthough national pathways differ, the underlying logic remains strikingly similar: unified QR systems serve as the access layer, stablecoins provide the liquidity layer, and the clearing infrastructure handles conversion into fiat before settlement with merchants. For users, paying with a stablecoin QR feels no different from scanning with Alipay or PayNow. Regulators retain oversight visibility while embracing new inflows of capital and innovation from the crypto market.Behind this trend lies a global institutionalization of the stablecoin ecosystem. Governments are no longer avoiding the issue—they are seeking “steady-state” integration models. Judging from current developments, QR-based stablecoin payments are fast becoming the intersection between crypto assets and the real economy—preserving the convenience of QR payments while extending stablecoin liquidity from virtual markets into everyday commerce.

22 Oct, 2025

Tether Hits 500 Million Users as Stablecoin Supply Nears $182 Billion

Tether, the world's largest issuer of USD-pegged stablecoins, said its user base has hit 500 million for the first time."USDT reached officially 500 million users," CEO Paolo Ardoino said in a post to X. "Likely the biggest financial inclusion achievement in history."Total supply for Tether's USDT stablecoin is at nearly $182 billion. The second-largest issuer is Circle with about $75 billion of USDC in circulation."Programmable money is the ultimate social network," Ardoino said Tuesday. "A peer-to-peer construct that transports both information and value."Last month, Bloomberg reported that El Salvador-based Tether is in talks with investors to raise as much as $20 billion at around a $500 billion valuation, which would make the stablecoin issuer one of the most valuable private companies in the world, alongside high-profile tech companies like OpenAI and SpaceX.Cantor Fitzgerald, said to be a Tether shareholder, is advising the potential deal, the report said.By the end of the year, Tether aims to launch USAT, a dollar-backed stablecoin designed for U.S. users. A new regulatory framework in the U.S. has served to motivate both crypto firms and traditional financial institutions to take more interest in stablecoins for the U.S. market.

20 Oct, 2025

Japan Mulls Allowing Local Banks to Buy and Sell Crypto

Japan's Financial Services Agency may allow local banks to trade and hold cryptocurrencies, local news outlets reported Sunday.According to a report from Yomiuri Shimbun, the FSA is planning to discuss potentially reforming the current supervisory guidelines that ban domestic banks from holding digital assets due to price volatility. The aim of the policy reform is to establish a system allowing banks to buy and sell crypto like stocks and government bonds, the report said. The agency also plans to create regulatory guardrails to mitigate financial risks from the potential update. The FSA is set to discuss the reform at an upcoming meeting of the Financial Services Council, an advisory body to the Prime Minister.Furthermore, the FSA is also considering allowing banks to register as crypto exchanges to form an easier environment for retail investors to participate in the crypto market, via trusted banking institutions.Meanwhile, the FSA has been putting efforts to make digital asset trading a fair market, as it reportedly plans to file amendments that would explicitly prohibit trading based on non-public information, with violators facing financial penalties proportional to their illicit gains.

17 Oct, 2025

Stablecoin Salaries: A New Era of Crypto Payments for SMEs

It looks like the world of traditional payment systems is getting a kick in the pants with the rise of stablecoin salaries. With inflation rearing its ugly head globally, especially in places like Argentina, startups are flocking to stablecoins for payroll. I mean, who wouldn't want a smoother ride compared to fiat currencies? This article dives into how stablecoin salaries are changing the game for crypto-friendly SMEs in Europe, making things a bit cheaper and more attractive to a tech-savvy crowd.A New Player in CryptoThe role of institutional investors in the crypto landscape has become pretty significant, hasn't it? With their cash and street cred, they can stabilize things, but they also bring some risks with them. As they pile up on crypto assets, we might see them correlate more with traditional markets. This could be a double-edged sword, as a crisis in crypto could ripple out to the wider financial world.Altcoin Seasons: A Familiar TuneLooking back, we know that altcoin seasons typically like to follow Bitcoin's big moves, right? Investors are always on the hunt for bigger returns. This time around, we have new narratives like DeFi and fresh blockchain tech fueling the altcoin fire. Analysts are eyeing 2025 and predicting that some altcoins, especially the strong ones, could be in for a big payday.MAGACOIN FINANCE: The New ContenderWhile the likes of Solana and Hyperliquid are making waves, we can't ignore the buzz around MAGACOIN FINANCE. It’s quickly becoming the darling of early-stage investors chasing after explosive growth. They've already raked in millions, with verified smart contracts and dual audits from Hashex ensuring a level of transparency and investor protection that we all appreciate. Their deflationary model and early exchange integrations give it a solid shot at being a go-to asset for institutional adoption.The enthusiasm for MAGACOIN FINANCE is real, with an active wallet base and organic marketing traction. Some are calling it both undervalued and a hidden gem, ready to ride the same accumulation waves seen in more established altcoins.The Shift to Stablecoin SalariesStablecoin salaries are changing the way crypto-friendly SMEs in Europe operate. With instant, cross-border payments that cost a fraction of what traditional banks charge, these salaries enhance cash flow and cut down on overhead. For SMEs that work with international teams, this is a game changer, opening doors to a global talent pool without the hassle of currency conversion.And let’s not forget the earning potential. Funds held in stablecoins can be put to work in decentralized finance (DeFi), turning payroll from a cost into a potential profit. As regulations shift, compliant firms can use stablecoins for payroll and B2B payments, optimizing their working capital and cross-border transactions.The Volatility DilemmaNow, while stablecoins help reduce exposure to crypto volatility, they do come with their own set of risks—like issuer solvency and market liquidity. SMEs better stick to stablecoins that have solid reserve attestations and are regulatory compliant. Plus, adopting crypto payroll means investing in tech, security, and compliance. Gotta weigh those costs against the perks of a crypto payment platform.Summary: The Future of Crypto PaymentsStablecoin salaries are making crypto-friendly European SMEs rethink how they manage their money, invest, and recruit talent. By tapping into the cost efficiency, speed, and earning potential of stablecoins—while navigating ever-changing regulations—they could gain a leg up in the digital economy. As institutional interest in crypto comes back into focus, the fusion of stability and high-upside opportunity makes stablecoin salaries seem like they could be a transformative force in the world of cryptocurrency payments.

15 Oct, 2025

Franco-German Bank ODDO BHF Launches Euro-Backed Stablecoin

Franco-German banking group ODDO BHF launched a stablecoin pegged to the euro under the European Union’s Markets in Crypto-Assets (MiCA) regulation.According to an announcement on Wednesday, the bank will issue the EUROD stablecoin, while market-making platform Flowdesk will provide liquidity and Fireblocks will supply the tokenization infrastructure.Guy de Leusse, deputy chief operating officer at ODDO BHF, said the group “felt it was essential to offer a European solution denominated in euros to provide an alternative to stablecoins denominated in US dollars.”Stablecoins are digital tokens pegged to traditional currencies like the euro. The new token will be initially listed on the Spanish-based crypto exchange Bit2Me.ODDO BHF is a privately owned European financial group formed in 2016 through the merger of France’s ODDO bank, founded in 1849, and Germany’s BHF-BANK, founded in 1854. According to the bank, it operates across France, Tunisia, Germany and Switzerland.European stablecoins risingUntil now, the stablecoin market has been dominated by dollar–pegged tokens. Tether’s USDt and Circle’s USDC remain the two largest globally, accounting for more than 83% of the total $306.35 billion stablecoin market capitalization, according to data from DefiLlama.But the rest of the world, particularly Europe, is beginning to take more of an interest in developing stablecoins pegged to their fiat currencies.On April 20, 2025, Société Générale’s regulated digital asset arm, SG-Forge, introduced EUR CoinVertible, a euro-denominated stablecoin on Ethereum available to qualified institutional investors onboarded by the bank. In July, AllUnity, a joint venture backed by Flow Traders, Deutsche Bank’s DWS, and Galaxy, announced the release of EURAU. The regulated euro-pegged stablecoin became publicly available on July 31.Nine European banks also announced plans to launch a euro-pegged stablecoin, which is expected to launch in the second half of 2026.According to Bhau Kotecha, co-founder of Paxos Labs, “USD-backed stablecoins have benefited from a multi-year head start.” To achieve comparable growth, he said, euro and other fiat-backed issuers “will need to develop unique adoption strategies focusing on the right partnerships, use cases, and liquidity pathways.”Since the United States passed the GENIUS Act stablecoin bill in July 2025, momentum appears to be building in Europe to develop homegrown, euro-denominated stablecoins.In September, European Central Bank (ECB) president Christine Lagarde cautioned that the European Union needs to close regulatory loopholes around foreign stablecoins, warning that unregulated issuers could draw liquidity away from the euro and the broader EU financial system.Speaking on Thursday during a hearing on the eurozone’s economic outlook, Pierre Gramegna, managing director of the European Stability Mechanism (ESM), said “Europe should do its best to facilitate the generation of euro-denominated stablecoins by domestic issuers.”Europe has also been debating a digital euro, a central bank digital currency, in the European Parliament since 2023, but its launch is not expected before 2029.

13 Oct, 2025

Citi Targets 2026 Launch for Crypto Custody Service

Citi is aiming to launch a service for the custody of crypto assets in 2026, an executive at the bank told CNBC, as Wall Street giants expand their footprint in the digital currency space.Biswarup Chatterjee, global head of partnerships and innovation in the services business at Citi said the bank has been developing a crypto custody service for the last two-to-three years and is making progress.“We have various kinds of explorations ... and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” Chatterjee said.For a long time, traditional financial instutions have stayed away from cryptocurrencies like bitcoin and ether. However, President Donald Trump’s administration has built a more favorable regulatory environment for digital assets in the U.S. as new laws such as the GENIUS Act has looked to regulate specific areas including stablecoins. This has enabled traditional financial institutions to launch products and services to do with digital assets.In the world of crypto, custody comes in many forms including a digital asset exchange holding digital coins or the institution itself doing self-custody. Custodian services enable a bank to hold assets on behalf of its clients. This could for example, include shares in companies. There are also companies that have sprung up specifically related to crypto custody.Chatterjee said the upcoming custody service would involve Citi holding the native cryptocurrency.There are risks with all forms of custody such as cyberattacks that lead to theft of assets. Banks may offer an alternative because they are heavily regualted and have a history in the custody of assets.For Citi, Chatterjee said the lender is looking at both an in-house developed technology solution for custody as well as potential partnerships with third-parties.“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas may we may use a ... third party, lightweight, nimble solution for other kind of assets,” Chatterjee told CNBC.“So we’re not currently ruling out anything.”Not all Wall Street banks are convinced on the custody strategy. JPMorgan CEO Jamie Dimon said this year that while the bank will let clients buy cryptocurrencies, it will not custody the asset.Exploration of stablecoinsU.S. banks have launched various services this year that touch on cryptocurrencies but also rely on the underlying blockchain technology.JPMorgan announced plans this year for a deposit token that is intended to serve as a digital representation of a commercial bank deposit. This would allow movement of money 24 hours a day and seven days a week.These deposit tokens are built on the Ethereum network. Citi also has its own version called Citi Token Services which allows cross-border movement of money quickly and at all times of the day.Banks are seeing blockchain as a way to move money around the world in different currencies quickly, even when traditional banking windows are closed.The next potential product they are eying are stablecoins. This type of digital coin is usually pegged to a fiat currency like the U.S. dollar and backed by real-world assets such as bonds, in order to maintain its value. The biggest commercial stablecoins are Circle’s USDC and Tether’s USDT.Citi’s Chatterjee said stablecoins could be appealing in areas of the world with a less-developed banking and payments system. As Citi’s clients expand into those countries and interact with suppliers and customers there, a stablecoin-like product could be viable, he said.“We do recognize the fact that there are these pockets in the world where you have a commercial need from our clients to be there and do business,” Chatterjee said.The Citi executive added that the bank is still in the “early stages of the stablecoin exploration.” Last week, stablecoin infrastructure firm BVNK announced it had received an investment from Citi, underscoring the bank’s interest in the space.Other Wall Street banks are also in the early phase of assessing stablecoins. Bank of America CEO Brian Moynihan said in July that the lender is working on launching stablecoins. JPMorgan is also in the mix.Scott Lucas, global head of markets digital assets at JPMorgan, told CNBC on Monday that the company is also “exploring” the digital currency.“There’s a real opportunity for us to think about how we can offer different services for our clients on the cash side, as well as responding to client demand to do things on stablecoins,” Lucas said. “And that strategy is still emerging, as you can understand, because it’s only really been a few months since we’ve had some more clear regulation around what the opportunity looks like.”