Banks and Crypto Converge, Stablecoins Become Core Settlement Tools
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 07 2026- Convergence of Financial Systems: Major banks like JPMorgan and Citi are now operating stablecoins and tokenized deposit products in live environments, indicating a shift from resisting blockchain to integrating it directly into payment and treasury systems, thereby enhancing the speed and efficiency of fund flows.
- Settlement Efficiency Improvement: Stablecoins and tokenized deposits are reshaping liquidity management within financial institutions, enabling instant fund transfers and automatic rule enforcement via smart contracts, significantly reducing costs and complexities in cross-border payments.
- Formation of a New Settlement Layer: Stablecoins serve as a settlement layer between banks and payment systems, providing speed and global interoperability, while banks continue to offer trust and regulatory oversight to ensure the safety and compliance of funds.
- Intensified Competition for Interoperability: The future competitive focus will be on system interoperability, as financial institutions, fintechs, and crypto networks race to integrate deposit tokens, stablecoins, and local currencies into seamless payment flows, thereby defining how money moves in the next decade.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
