# Banking Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Banking", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Banks Advance Plans to Create Stablecoins as Bank for International Settlements Questions Their Role

While the Bank for International Settlements (BIS) argues that stablecoins lack key properties to function as money at scale, major global banks are actively developing their own stablecoin plans on public blockchains. BIS head Pablo Hernández de Cos advocates for tokenized bank deposits as a superior foundation for modern digital payments, citing issues with stablecoins regarding uniformity, interoperability, and financial integrity. These problems include exchange rate fluctuations between different stablecoins, settlement complexities across fragmented blockchains, and anonymity concerns. Despite these warnings, a consortium of over a dozen major banks, including Bank of America and Citi, is preparing to launch a bank-issued stablecoin. This shift is driven by competitive pressure and regulatory changes like the GENIUS Act, with banks fearing potential deposit outflows to crypto-native issuers. Data shows stablecoin transaction volumes are massive, but a small fraction represents real-economy payments. While central banks prefer tokenized deposits for core payments, commercial banks increasingly see a strategic need for stablecoins to retain relevance, even as some, like JPMorgan, currently deny having imminent launch plans.

cryptonews.ruYesterday 12:34

Banks Advance Plans to Create Stablecoins as Bank for International Settlements Questions Their Role

cryptonews.ruYesterday 12:34

Analysts Identify Risk of Tokenized Deposits for Credit Availability

Analysts from the Federal Reserve Bank of Dallas warn that the widespread adoption of tokenized deposits by US banks could negatively impact credit availability. While banks see them as an alternative to stablecoins, their key feature—instant transferability—could make deposits more sensitive to interest rates and prone to outflows. This shift could undermine banks' traditional ability to use stable, long-term deposits to fund long-term loans. If deposits become more volatile, banks may need to hold more high-quality liquid assets and rely more on term debt, potentially increasing borrowing costs for consumers and businesses. The report estimates significant impacts: a 10% reduction in deposit duration could cut maturity transformation capacity by about $580 billion, and a 10% increase in rate sensitivity could reduce banks' willingness to take on interest rate risk by roughly $700 billion. Drawing parallels with Brazil's instant payment system Pix, the analysis suggests such innovations lead banks to increase liquid asset holdings and reduce credit intermediation. While tokenized deposits are still in early development, their growth alongside stablecoins and tokenized assets could fundamentally reshape the banking system and present new challenges for monetary policy and financial stability.

cryptonews.ru2 days ago 12:18

Analysts Identify Risk of Tokenized Deposits for Credit Availability

cryptonews.ru2 days ago 12:18

Tokenized Deposits Could Raise US Lending Costs: Dallas Fed Economists

Tokenized deposits could increase U.S. lending costs and make bank funding less stable, according to an analysis by Dallas Fed economists. Rosy Leigh and Sreeni Ramaswamy note that instant settlement capabilities, programmable deposit tokens, and AI could allow depositors chasing higher yields to move funds faster between banks, reducing deposit tenures and increasing their sensitivity to interest rates. The economists estimate that a 10% increase in deposit rate sensitivity could reduce banks' capacity to hold long-term loans by around $700 billion over a ten‑year equivalent. A 10% reduction in deposit tenures could lower capacity by about $580 billion. These scenarios do not imply a direct, proportional cut in lending but highlight potential pressures. U.S. banks are developing blockchain networks for moving tokenized deposits around‑the‑clock while keeping funds within the regulated banking system. Thirty‑nine state banking associations recently formed the BankChain alliance to build a nationwide network, while The Clearing House is developing a separate network with major banks. Institutions like Standard Chartered and HSBC have also tested cross‑border tokenized deposit transactions via blockchain. Banks may respond to more volatile deposits by holding more liquid assets (like reserves and Treasuries) or relying more on wholesale debt—which would likely raise borrowing costs for consumers and businesses. The authors cite Brazil's Pix instant payment system as a comparative example, where increased use raised bank liquidity holdings and reduced credit intermediation.

cryptonews.ru08/27 07:31

Tokenized Deposits Could Raise US Lending Costs: Dallas Fed Economists

cryptonews.ru08/27 07:31

Tokenized deposits could raise US credit costs: Dallas Fed economists

The Dallas Fed economists have released a paper analyzing that tokenized deposits, if widely adopted, may increase credit costs for U.S. households and businesses by making bank funding more volatile and less stable. The core concern is that instant settlement, combined with programmable tokens and AI, could enable depositors to move funds between banks rapidly in search of higher yields, significantly increasing deposits' sensitivity to interest rates. The economists modeled that a 10% increase in this sensitivity could reduce banks' capacity to hold long-term assets by an estimated $700 billion over a 10-year equivalent, while deposits staying 10% less time at banks could reduce it by about $580 billion. These figures represent capacity constraints, not direct lending cuts. The analysis comes as U.S. banks actively develop shared blockchain networks for tokenized deposits, such as the new BankChain Alliance and a network by major banks including JPMorgan. While aimed at keeping funds within the regulated system, the economists warn banks might respond to more volatile funding by holding more liquid assets (like Treasuries) or relying more on wholesale term debt—both of which could raise the cost of credit. They referenced Brazil's Pix system as a comparative case where increased instant payment usage led banks to hold more liquidity and reduce credit intermediation.

cointelegraph08/27 06:50

Tokenized deposits could raise US credit costs: Dallas Fed economists

cointelegraph08/27 06:50

The Federal Reserve Bank of Dallas Announces a Colossal $700 Billion Allocation! How Will This Affect Bitcoin?

The Federal Reserve Bank of Dallas warns that the growing adoption of tokenized deposits in the banking sector could pose unforeseen risks to the financial system. Tokenized deposits, which transfer traditional bank deposits to blockchain infrastructure, offer features like instant settlement and programmable payments. While issued by regulated banks and maintaining deposit characteristics, they could enable customers to move funds between banks much faster in search of higher yields. This would significantly weaken banks' liquidity management and lending capacity. The Fed's analysis estimates that an increase in deposit interest rate sensitivity by 10% could reduce the interest rate risk banks can bear by approximately $700 billion over ten years. Similarly, a 10% shortening of the average deposit maturity could reduce the banking system's capacity to convert deposits into loans by about $580 billion. This acceleration of deposit movement could force banks to rely on more expensive wholesale funding, increasing borrowing costs for consumers and businesses and potentially making traditional banks resemble non-bank financial institutions. While the report does not directly address Bitcoin, the described shifts could have long-term implications. Firstly, the tokenization of deposits by banks could promote institutional adoption of blockchain-based financial infrastructure, indirectly legitimizing digital asset classes like Bitcoin. Secondly, faster-moving deposits and resulting higher funding costs could increase the price of liquidity in the financial system. This could create near-term headwinds for risk assets, including Bitcoin, due to tighter financial conditions and potential selling pressure. The report concludes that widespread adoption of this technology could impact many areas, from payment systems to monetary policy transmission mechanisms.

cryptonews.ru08/26 21:01

The Federal Reserve Bank of Dallas Announces a Colossal $700 Billion Allocation! How Will This Affect Bitcoin?

cryptonews.ru08/26 21:01

The Largest Wall Street Bank, Previously Considered a Cryptocurrency Foe, Confidently Enters the Crypto Sector!

The approach of the US banking sector towards stablecoins is rapidly evolving. Banks, including JPMorgan Chase, are now exploring the launch of their own stablecoins despite previous skepticism and a preference for tokenized deposit solutions. While JPMorgan is reportedly in early-stage discussions and has not begun active development—citing no current plans but openness to future client demand and regulatory developments—it already possesses related infrastructure like JPM Coin. This shift comes as banks, having initially lobbied against crypto firms over fears stablecoins could compete with traditional deposits, are reconsidering their stance. The growing interest from major corporations like Visa, BlackRock, Google, and DoorDash in the stablecoin ecosystem is a key driver. Banks now view issuing stablecoins as a potential defensive strategy to protect their payment and deposit business models. Meanwhile, other major financial institutions, including Bank of America, Wells Fargo, and Santander, are reportedly progressing on a joint initiative to create a globally usable stablecoin. This proposed stablecoin would initially target commercial clients with a US dollar base, with plans to later incorporate euros and other G7 currencies. Regional use cases are expected to vary.

cryptonews.ru08/26 18:56

The Largest Wall Street Bank, Previously Considered a Cryptocurrency Foe, Confidently Enters the Crypto Sector!

cryptonews.ru08/26 18:56

US state banking groups plan nationwide blockchain network for 2027

Thirty-nine US state banking associations have formed the BankChain Alliance, aiming to launch a nationwide, industry-owned blockchain network for banks by 2027. The network is intended to support smart payments, tokenized deposits, stablecoins, and automated settlement, and plans to be interoperable with other blockchains. The alliance represents thousands of US financial institutions and will invite banks nationwide to take ownership stakes, though specific governance and funding details were not disclosed. This initiative is part of a broader trend of US banks building shared on-chain infrastructure. Recent examples include a major bank-backed network from The Clearing House, a regional network called Cari, and a consortium for community banks. These efforts focus on using tokenized deposits—claims on individual banks—to enable programmable, 24/7 transfers while keeping funds on bank balance sheets. Separately, stablecoin projects are also adopting consortium models, such as the planned Open USD stablecoin backed by over 140 companies.

cointelegraph08/26 11:51

US state banking groups plan nationwide blockchain network for 2027

cointelegraph08/26 11:51

Why is XRP in the red now after a 50% weekly surge?

XRP fell 2.2% over 24 hours after a 49.4% surge in the previous week, moving back into negative territory. The drop coincides with major banks advancing blockchain-based payment solutions that address the need for prefunding in cross-border transfers, potentially competing with XRP's use case. JPMorgan Chase expanded its blockchain settlement system, Kinexys, to eight currencies, allowing clients to move and exchange funds around the clock without needing a separate crypto asset. Similarly, Citigroup operates a round-the-clock USD clearing network and offers Citi Token Services for tokenized deposits, aiming to speed up payments while reducing the amount of capital required upfront. While its 90-second settlement is slower than XRP Ledger's 3-5 seconds, using cash already held in a regulated bank may be more critical for companies. Furthermore, SWIFT has facilitated interoperability between different bank-issued tokenized deposits without a common cryptocurrency. In a recent pilot, HSBC and Standard Chartered completed a cross-border transaction using SWIFT's ledger to coordinate and settle obligations between their separate token systems. SWIFT reports that 17 banks across six continents are preparing for real transactions using this model. These developments in traditional finance present alternative, bank-integrated pathways for instant, cross-border value transfer, potentially impacting the demand and price trajectory for XRP.

cryptonews.ru08/26 05:13

Why is XRP in the red now after a 50% weekly surge?

cryptonews.ru08/26 05:13

US banking groups plan to launch nationwide blockchain network in 2027

A group of 39 U.S. state banking associations has formed the BankChain alliance to build a nationwide, bank-owned blockchain network scheduled to launch in 2027. The network will support smart payments, tokenized deposits, stablecoins, and automated settlements, with plans for interoperability with other blockchains. The alliance invites banks across the country to take an equity stake, though specific participants and funding details were not disclosed. BankChain joins several U.S. banking initiatives announced since late 2025, aiming to create shared infrastructure for moving deposits and enabling on-chain payments within the regulated banking system. Other projects include The Clearing House's initiative backed by major banks like JPMorgan Chase and Bank of America for settling tokenized deposits, a separate network by regional lenders through Cari, and a consortium for local banks via the Texas Independent Bankers Association. In parallel, stablecoin developers are also adopting consortium models, such as the Open USD project, which involves over 140 companies and plans to launch in 2026.

cryptonews.ru08/26 05:10

US banking groups plan to launch nationwide blockchain network in 2027

cryptonews.ru08/26 05:10

Banks Fight Back Against Stablecoins? 39 State Associations in the US Form BankChain, Targeting Launch of Their Own Chain by 2027

U.S. Banks Form Alliance to Launch Own Blockchain in Response to Stablecoins On August 25, banking associations from 39 U.S. states jointly announced the formation of the BankChain Alliance. This coalition, representing approximately 3,283 banks with $21.8 trillion in assets, plans to develop and launch a proprietary, industry-owned and governed blockchain network by 2027. The primary goal of the initiative is to enable banks to offer modern digital services—including tokenized deposits, bank-issued stablecoins, smart payment tools, and automated settlement—while keeping customer funds within the regulated banking system. This move is widely seen as a strategic response to the growing market share of external stablecoin issuers like Circle and Tether, which banks fear could draw away customers and deposits. Tokenized deposits are described as a "digital twin" of traditional deposits, remaining on bank ledgers and protected by existing regulations and FDIC insurance, but allowing faster transfers. Bank-issued stablecoins would be fully regulated and backed by actual bank deposits. The alliance is currently selecting technical partners and emphasizes that its network will be interoperable with other blockchains. The effort reflects the banking industry's attempt to integrate blockchain capabilities within its own regulatory perimeter as stablecoin frameworks develop in the U.S.

marsbit08/26 04:31

Banks Fight Back Against Stablecoins? 39 State Associations in the US Form BankChain, Targeting Launch of Their Own Chain by 2027