The Future of Money is a Team Sport: Why Banks and FinTechs Must Unite on Stablecoins
- admin cys
- 2 days ago
- 3 min read
A Report by CYS Global Remit FinTech Development Unit
The world of finance stands at the threshold of a revolution, and at its very core lies the stablecoin. These digital currencies, anchored to stable assets like the US dollar, are rapidly transitioning from internet curiosities to central players in global finance. With monthly supply figures soaring beyond US$228 billion and transaction volumes that now dwarf industry titans Mastercard and Visa, we've moved well past asking if stablecoins will reshape finance—the question now is how this transformation will unfold.
The answer lies in an unexpected partnership: the convergence of traditional banking powerhouses with agile fintech innovators.
This collaboration isn't merely advisable—it's absolutely essential. Luke Boland, Standard Chartered Bank's head of fintech for ASEAN, South Asia and Greater China and North Asia, emphasises that unlocking stablecoins' full potential requires tackling challenges that neither sector can manage independently. From threading through intricate legal and compliance mazes to constructing vital technological and market infrastructure, success demands a united approach.
A Symbiotic Relationship
The magic of this partnership emerges from each player's unique strengths perfectly complementing the other. Banks contribute decades of earned trust, comprehensive regulatory expertise, and the substantial capital foundations that guarantee monetary stability and reliability. They form the bedrock upon which a secure stablecoin ecosystem can flourish.
Meanwhile, fintechs serve as the innovation powerhouses and adoption accelerators. Their nimble nature enables them to craft intuitive platforms and drive cost-cutting efficiencies, particularly transformative in cross-border payments. They're the catalysts poised to democratise stablecoins, transforming them into practical, accessible solutions for:
Supplier payments and remittances
Global payroll systems
Capital markets settlement
This synergy already shows real-world results. Standard Chartered's partnership with Circle—the force behind the widely-used USDC stablecoin—on the Circle Payments Network exemplifies this approach. Through contributing to the network's design and compliance architecture, the bank helps construct a system that's simultaneously efficient, secure, and globally compliant—what the bank calls "a game changer for cross-border money movement."
The Regulatory Horizon
Any serious discussion about finance's future must address regulation head-on. Regulatory uncertainty has long stood as the primary obstacle to institutional digital asset adoption. However, the landscape is shifting dramatically.
Governments and financial authorities worldwide are progressing towards comprehensive stablecoin regulatory frameworks. Pioneering initiatives like Singapore's Single Currency Stablecoin Framework, Hong Kong's Stablecoin Bill, and the US Genius Act are ushering crypto assets into mainstream finance.
Crucially, this regulatory clarity doesn't stifle innovation—it enables it to thrive. Clear guidelines will encourage deeper collaboration between banks, fintechs, and technology partners, empowering them to navigate the evolving financial terrain with newfound confidence.
Beyond the Dollar
Whilst US dollar-pegged assets currently dominate the stablecoin market, the future promises greater diversity. Non-dollar stablecoins are gaining significant traction, driven by desires for localised payment innovation, enhanced capital flow control, and regional trade promotion.
Collaboration remains paramount here too. Standard Chartered's joint venture to launch a Hong Kong dollar-backed stablecoin demonstrates this principle in action. Through active participation in these emerging markets, banks and fintechs can gather invaluable insights and develop adaptable blueprints for global application.
The Path Forward
The journey towards a stablecoin-powered future isn't a solo sprint—it's a collaborative relay race. It demands traditional finance's steady expertise passing seamlessly to the fintech sector's speed and innovation. Through genuine partnership, banks and fintechs can surmount obstacles, capitalise on opportunities, and construct a financial system that's more efficient, inclusive, and secure for all.
The future of money isn't just digital—it's definitively collaborative.
