Overview
American Banker quoted Stephen Aschettino in an article titled "Investors Flock to New Fintech for Bank Stablecoins.” The article explores how Stablecore, a newly launched fintech firm, has successfully completed its first funding round aimed at integrating stablecoin technology into banks and credit unions and highlights growing investor interest in using blockchain-based stablecoins to modernize traditional financial institutions and improve payment systems
Speaking to American Banker, Aschettino notes that stablecoins are "a significant opportunity" for community banks and credit unions to remain competitive in the financial services industry.
"Instead of viewing them as a threat to traditional deposits, these institutions should see stablecoins as a tool to enhance their services. By offering faster, cheaper, and 24/7 payment rails, they can directly compete with larger banks and fintechs, attracting new customers and retaining existing ones who want to engage with digital assets. This can create a new source of fee income and help them solidify their role as essential players in their local economies."
He goes on to explain that the passage of the GENIUS Act, as well as other recent state and federal legislative developments, provides much-needed clarity to banks and fintechs on how to approach stablecoins. "However, community institutions must still be prepared to address critical concerns around reserve requirements, consumer protection, and operational resilience" he said. "This means establishing robust systems for managing reserves and ensuring all activities comply with the requirements set forth by their regulators."
Read the full article in American Banker (subscription may be required).
