Banks cautiously approach stablecoins despite market growth

Major U.S. banks are adopting a wait-and-see approach to stablecoins, despite significant market expansion and increasing transaction volumes. S&P Global Market Intelligence reports that only a small percentage of smaller institutions are developing frameworks, with none actively piloting stablecoin capabilities. Key concerns include potential deposit outflows, competition from new entrants, and unclear revenue impacts. While larger banks might explore issuance, smaller ones are expected to focus on intermediary roles within a multi-rail payments system, highlighting the need for significant legacy system upgrades to support real-time digital asset activity.