Financial institution Santander considering launch of stablecoin and cryptocurrency services
In the ever-evolving world of finance, several global systemically important banks (G-SIBs) and major financial institutions are actively participating in the expansion and infrastructure development of stablecoins. These partnerships, pilot programs, and integration initiatives aim to leverage stablecoins for faster, cheaper cross-border payments, treasury operations, and settlements.
Leading Banks and Their Key Initiatives
JPMorgan Chase, with its JPM Coin and Onyx platform, is an early mover in bank-issued stablecoins for institutional use. JPM Coin facilitates instant payment settlements within their network, with JPMorgan continuously expanding its blockchain infrastructure for broader financial institution integrations.
Citibank, HSBC, Bank of America, Goldman Sachs, and BNP Paribas are also actively exploring the potential of stablecoins. Citibank, for instance, is testing stablecoin solutions with major corporate clients to improve the speed and transparency of global payments. HSBC has explored stablecoins as a settlement layer to simplify and accelerate international trade finance.
Standard Chartered, on the other hand, is focusing on markets in Asia and Africa where banking infrastructure gaps make stablecoins effective for remittances and small and medium enterprise (SME) financing.
Regulatory Context and Global Initiatives
The GENIUS Act of 2025 in the U.S. establishes a federal regulatory framework for stablecoins, encouraging G-SIBs and stablecoin issuers to comply with reserve backing, liquidity, and audit standards. This Act has accelerated institutional adoption in the U.S., with large banks integrating stablecoins for payments, payroll, and treasury operations.
In Europe, the European Central Bank (ECB) and the Bank for International Settlements (BIS) have expressed concerns about stablecoin systemic risks but recognise their growing use, particularly for remittances and e-commerce. Major US card networks like Visa and Mastercard have integrated stablecoins, with banks following suit for seamless acceptance and settlements.
Emerging market banks are collaborating with fintech stablecoin platforms to provide dollar-based stablecoins as faster, more stable alternatives to fragile local currencies and banking structures.
Notable Participants
Banco Santander, a pioneer in investing in blockchain technology, is part of the early adopter group of Fnality alongside Lloyds Bank and UBS. Santander has a history of investing in blockchain technology, having been an early investor in Ripple and issuing a digital bond on Ethereum in 2019. If Santander introduces euro and dollar stablecoins for its clients, it will join the ranks of other G-SIBs like JPMorgan Chase, Citibank, HSBC, and Goldman Sachs.
Santander's digital bank, Openbank, has applied for a European cryptocurrency license under the MiCA Regulations. Other notable participants include Societe Generale's FORGE subsidiary, which launched the EURCV euro coin in 2023, and Deutsche Bank, a partner in ALLUnity, a stablecoin initiative planning to launch this year, subject to regulatory approval.
The expansion of stablecoin infrastructure has been significant for mainstream cross-border payments, offering improved speed, reduced costs, and increased financial stability in underserved markets while addressing key regulatory and systemic risk concerns.
- JPMorgan Chase, with its JPM Coin and Onyx platform, is leading the charge in bank-issued stablecoins, focusing on instant payment settlements within their network and expanding blockchain infrastructure for broader financial institution integrations.
- Other G-SIBs like Citibank, HSBC, Bank of America, Goldman Sachs, and BNP Paribas are also investigating the potential of stablecoins, with Citibank testing solutions for global payment improvement and HSBC exploring stablecoins as a settlement layer for international trade finance.
- Standard Chartered is concentrating on markets in Asia and Africa, where stablecoins can effectively bridge infrastructure gaps for remittances and small and medium enterprise (SME) financing.
- In the U.S., the GENIUS Act of 2025 has established a federal regulatory framework for stablecoins, encouraging G-SIBs and stablecoin issuers to comply with reserve backing, liquidity, and audit standards, expediting institutional adoption.
- European regulators like the European Central Bank and the Bank for International Settlements have acknowledged the growing use of stablecoins, particularly for remittances and e-commerce, though they flag concerns about systemic risks. Major US card networks like Visa and Mastercard have integrated stablecoins, with banks following suit for seamless acceptances and settlements.
- Emerging market banks are collaborating with fintech stablecoin platforms to provide dollar-based stablecoins as more stable alternatives to fragile local currencies and banking structures. Notable participants include Banco Santander, Societe Generale, Deutsche Bank, and others investing in blockchain technology and stablecoin initiatives following regulatory approval.
