Banks and fintech projects are joining stablecoin’ gold rush’

Large international banks and fintech projects are ready to launch their own stablecoins, aiming to capture their share of the cross-border payment market. According to the media, cross-border payments will become the primary application of stablecoins.

The Bank of America has recently issued a statement about being prepared to join PayPal, Standard Chartered, Revolut, and Stripe in entering the market dominated by USDT and USDC.

“If they make that legal, we will go into that business,” Bank of America CEO Brian Moynihan commented on the U.S. administration’s plans concerning the development of the stablecoin ecosystem.

Previously, this type of asset was only used for exchanges and transfers; now, stablecoins are becoming more widely spread in emerging markets, serving as an alternative to local banks.

“Stablecoins and the more modern chains are really interesting for the payments use case, and that makes up our business,” Stripe president John Collison noted.

PayPal has already issued its PYUSD and is ready to embrace new ways of using the token. The company is hopeful that the demand for its stablecoin will be especially strong among U.S. businesses importing goods from foreign suppliers.

According to Index Ventures partner Martin Mignot, stablecoins are ‘attractive’ for markets that lack ‘great infrastructure or great liquidity’ but have sizable currency risks.