Bank of America, Stripe, Revolut Lead Stablecoin Charge: TradFi Giants Race to Launch Digital Currencies in Cross-Border Payments Push

• Major banks and fintechs enter the stablecoin market to compete in cross-border payments.
• Regulatory acceptance grows, boosting institutional confidence in stablecoins.
• Tether and Circle remain dominant, but competition intensifies as firms seek market share.

Some of the world’s biggest banks and fintech firms are racing to launch their own stablecoins. They aim to grab a share of the expanding cross-border payments market. 

According to the Financial Times, Bank of America, Standard Chartered, Revolut, and Stripe have signaled plans to issue their own digital assets. This move will allow them to directly challenge stablecoin leaders Tether and Circle.

TradFi Giants Eye Stablecoin Market Share, Challenging Crypto-Native Leaders

The shift comes as stablecoins become a real part of the financial system. This trend also shows a change from past skepticism, especially after the failure of Meta’s Libra stablecoin plan six years ago. 

Importantly, the trend is growing further under the Trump administration, which has embraced cryptocurrencies..

Stablecoins Gain Mainstream Acceptance Beyond Just Crypto

The surge in stablecoin development has been called a modern-day gold rush. “It’s about people selling shovels in the stablecoin gold rush,” said Simon Taylor, co-founder of fintech consultancy 11:FS. 

He explained that the rapid expansion is driven by fear of missing out (FOMO). This feeling compels firms to establish a presence before stablecoin regulations are fully in place.

“The other thing that’s driven it is real volume,” he added. “Founders want to get a piece of it because they know they’re going to get stablecoin regulation, and so it’s all of those things coming together.”

Stablecoins Facilitate Low-Cost, Instant Transactions for Diverse Businesses

Interestingly, businesses in sectors like commodities, agriculture, and shipping are using stablecoins for transactions. 

Unlike traditional banking systems, stablecoins provide instant, low-cost transfers, particularly in unstable regions.

Related: Investors Lie in Wait as Stablecoins Circulating Supply Surge Over $16B in 2025

Stablecoin Market Surges to $231 Billion, Transaction Volumes Explode

The market’s growth is clear in current figures. As of this year, the global supply of stablecoins has reached $231 billion. 

Tether (USDT) dominates with $142 billion in circulation, followed by Circle’s USDC at $57 billion. Transaction volumes hit $710 billion last month, up from $521 billion a year earlier, per Visa .

New Stablecoin Entrants Face Uphill Battle Against Established Leaders

Despite the growth, new stablecoin issuers have challenges to overcome. For example, established players like Tether processed over $131 billion in transactions last month. In contrast, PayPal’s PYUSD only processed $163 million. 

Experts suggest that while stablecoins are beneficial in markets with high currency risk, their adoption in Western economies is still not certain.

To strengthen their positions, companies are making strategic acquisitions and partnerships. Last month, Stripe bought stablecoin platform Bridge for $1.1 billion. This was its largest acquisition ever. 

Standard Chartered is also preparing to launch a Hong Kong dollar-backed stablecoin under new regulatory guidelines. At the same time, PayPal is expanding PYUSD integration for international payments.

Regulatory Framework Takes Shape

Governments and financial regulators are creating clearer guidelines for stablecoin issuers. In the U.S., Congress is debating bills that would standardize stablecoin regulations. This would give banks and businesses more confidence to enter the market.

Related: European Crypto Markets Face Disruption as Binance to Delist Tether USDT, DAI, and Other Stablecoins

Chief executive of Bank of America Brian Moynihan recently reacted to the Trump administration’s crypto plans. He noted that the bank will venture into the business if the government legalizes stablecoins. 

Meanwhile, the European Union has put in place new compliance rules. The UK’s financial regulator is expected to issue guidance later this year.