Big banks are adopting crypto: the rise of stablecoins begins!

Big banks are adopting crypto: the rise of stablecoins begins!

The world of cryptocurrencies is at a crucial turning point. Institutional investors are showing growing interest and the market capitalization of stablecoins recently exceeded $265 billion, up about 22 percent in the first half of 2025. This shows that major banks are ready to enter the crypto market. [Cryptodnes] reports that numerous major banks are considering launching their own stablecoins once the necessary regulatory approvals are received.

Arthur Azizov, founder of B2 Ventures, highlights that billions of dollars in investments are flowing into government-backed initiatives as well as ETFs and stablecoin projects. Bitcoin investment products have a particularly leading position. The market indeed seems to be changing rapidly as banks officially enter the crypto markets.

The potential of stablecoins

Stablecoins are becoming increasingly important and are viewed by institutional investors as essential tools in portfolio management. They combine digital assets with the security of fiat currencies, providing a stable alternative in an otherwise volatile crypto environment. According to [Intelligent Investors], leading stablecoins such as Tether (USDT) and USD Coin (USDC) have significant market shares, with Tether accounting for approximately 61.8 percent and USDC accounting for approximately 25 percent. The EU regulation MiCA also promotes the growth of USDC through its compliance requirements in Europe.

The stablecoin market can be divided into three categories: fiat-collateralized stablecoins that are backed by liquid reserves (e.g. USDT, USDC), crypto-collateralized stablecoins that are over-collateralized (e.g. DAI), and algorithmic stablecoins that seek stability through smart contract-based adjustments but involve higher risks. These instruments are seeing increasing acceptance as digital cash, hedging and liquidity provision.

Regulation and market dynamics

Regulation of stablecoins is increasing in both the US and Europe. The US GENIUS Act requires strict 1:1 coverage and monthly audits for fiat-backed stablecoins, while the MiCA Directive in the EU requires full reserve holdings and regular audits since June 30, 2024. From January 2025, Crypto Asset Service Providers (CASPs) will have to apply for an official license.

Stablecoin adoption may even accelerate at the expense of decentralized principles as regulatory measures become more stringent. While traditional banks want to quickly integrate digital assets into their services, this could also put smaller crypto startups in a difficult position.

Overall, the possible future of stablecoins will be exciting, particularly in relation to their role as a global bridge currency in competition with central bank digital currencies (CBDCs). This development could present new opportunities for professional investors who need to carefully weigh the risks and rewards associated with handling and using stablecoins.

[Cryptodnes] and [Intelligent Investors] report on the dynamic changes in the crypto industry and the potential acceleration of market participation by institutions. It remains to be seen how this sector will evolve as regulators set the rules and technology advances.