Stablecoins could fundamentally reshape bank funding models, customer behavior, and deposit competition, according to a senior strategy advisers at a major North American bank. While large institutions may adapt by launching their own digital assets, the
Stablecoins may still be widely
misunderstood outside financial markets, but for treasury and balance sheet
professionals, the technology increasingly represents a serious strategic
challenge to traditional banking models.
According to a senior strategy
executive at a major North American bank, stablecoins are already reshaping how
institutions think about deposits, customer behavior, funding structures and
competitive risk.
Speaking ahead of CeFPro’s 2026
treasury and balance sheet management conference, he said:
"Stablecoins solved a big issue
for traders," adding that crypto investors previously had to move funds
back into traditional banking systems whenever they wanted to lock in profits
from assets such as Bitcoin or Ethereum.
"Now stablecoins solved this
problem," he said. "I can go from Bitcoin, park it in stablecoins,
and they're usually pegged to the U.S. dollar - it's one of the main reasons
why they took off."
But while the technology initially
emerged as a convenience for crypto markets, he believes its implications for
mainstream banking are becoming far broader.
"Well, I'd say that this really
changes a lot about how risk has to be managed," he said.
The executive pointed to recent
political and regulatory tensions surrounding stablecoin issuers potentially
offering yield on digital dollar holdings. According to him, major banks
reacted aggressively because of the threat posed to traditional deposit franchises.
"Banks have to manage the risk
of being disintermediated," he warned. "People are thinking about
going to stablecoins. We are at risk of losing a good chunk of our
deposits."
The impact, he argued, will vary
significantly depending on the size and capabilities of individual
institutions.
Large global banks may attempt to
compete directly by launching their own stablecoins or digital asset offerings,
while regional and smaller institutions may have fewer strategic options
available.
"A large international bank like
ours is exploring starting its own stablecoin," he said. "Now whether
we can compete with the likes of Tether is a different story."
Mid-sized institutions, he suggested,
may instead partner with existing issuers such as Circle, while smaller
organizations could be limited to allowing customers to hold or settle using
public stablecoins rather than developing their own infrastructure.
"Big banks are going to
benefit," he said. "Smaller banks are definitely under greater
threat."
Beyond the direct competitive
challenge, he believes stablecoins could permanently alter consumer behavior
around deposits and liquidity management.
"It makes it a lot easier to
move funds around," he explained. "It'll change the entire path of
your data. You're looking at much shorter duration portfolios."
