Traditional banks are encroaching on the stablecoin market by launching interoperable tokenized deposit networks, potentially reducing the appeal of non-interest-bearing stablecoins for corporate treasurers.
This is an opinion column arguing that tokenized bank deposits, shared banking networks and regulatory moves like the GENIUS Act from January could narrow stablecoins' market rather than close it. It concerns payment stablecoins and bank infrastructure, not Bitcoin directly, so any price effect on BTC is indirect and speculative. Bitcoin's role as a store of value and trading asset is not the article's subject.
As traditional banks accelerate the adoption of tokenized deposits, the competitive advantage of stablecoins faces a significant test. With 25 U.S. banks developing a shared network and European initiatives like Germany's CBMT already processing live payments, the financial sector is increasingly integrating digital money into regulated systems. This shift, coupled with the upcoming GENIUS Act, may narrow the market for stablecoins by offering interest-bearing alternatives.