{"id":26835,"date":"2025-05-14T22:02:09","date_gmt":"2025-05-14T22:02:09","guid":{"rendered":"https:\/\/dogewisperer.com\/banks-exploring-stablecoin-amid-fears-of-losing-market-share-bitgo-executive-says\/"},"modified":"2025-05-14T22:02:09","modified_gmt":"2025-05-14T22:02:09","slug":"banks-exploring-stablecoin-amid-fears-of-losing-market-share-bitgo-executive-says","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=26835","title":{"rendered":"Banks Exploring Stablecoin Amid Fears of Losing Market Share, BitGo Executive Says"},"content":{"rendered":"
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As the stablecoin competition is heating up with looming regulation in the U.S., traditional finance institutions are taking notice\u2014largely out of fear of losing out to digital dollars, said Ben Reynolds, BitGo’s managing director of stablecoins, at Consensus 2025 in Toronto.<\/p>\n

Speaking at a panel discussion, he said that BitGo’s recently launched stablecoin-as-a-service has seen \u201cincredible inbound\u201d interest from U.S. and foreign banks wanting to tokenize deposits or issue stablecoins.<\/p>\n

“A lot of banks are just being defensive\u2014they\u2019re afraid they\u2019re going to lose their deposits,\u201d Reynolds said. “They look at stablecoins and say: How do we not get left behind?”<\/p>\n

Yield-bearing versions of stablecoins and tokenized money market funds have seen rapid growth recently, but still make up only a fraction of the $230 billion stablecoin market.<\/p>\n

A16z\u2019s Sam Broner said that while yield-bearing stablecoins are a promising market segment, their primary use case is for payments and transactions where users don’t really care about yields. Still, a near-term killer use case could be \u201ccollateral mobility\u201d\u2014the ability to instantly move money to meet obligations across different platforms.<\/p>\n

“You can\u2019t do a lot of things with a share of a money market fund,” Broner said. “You\u2019ve got lock-up periods, business-hour settlement, and contracts that have to be manually reviewed. Crypto gives you programmatic, permissionless flexibility.”<\/p>\n

Yield-bearing stablecoins could also be attractive for institutions, said Matt Kunke, crypto product strategist at BlackRock. “If you’re a DAO, protocol, or market maker, moving between crypto holdings on an exchange and your brokerage account is slow and full of friction,” he said. “Stablecoins that carry yield just reduce that drag.\u201d<\/p>\n

However, regulatory distinctions will shape the market. \u201cA tokenized Treasury fund is a security, and an actual stablecoin is not,\u201d he explained. \u201cThey deserve fundamentally different markets.”<\/p>\n

Joseph Saldana, chief financial officer of the Wyoming Stable Token Commission, pointed out that yield\u2013generating tokens have the power to broaden investors’ access compared to mutual funds that often have minimum limits of investment that “lock out a lot of people.”<\/p>\n

“We want to service the underbanked and give broader access to instruments the rest of us enjoy every day,” Saldana said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the stablecoin competition is heating up with looming regulation in the U.S., traditional finance institutions are taking notice\u2014largely out of fear of losing out to digital dollars, said Ben Reynolds, BitGo’s managing director of stablecoins, at Consensus 2025 in Toronto. Speaking at a panel discussion, he said that BitGo’s recently launched stablecoin-as-a-service has seen […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-26835","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/26835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26835"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/26835\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}