Traditional Banks Set to Compete with Tether in Stablecoin Market

Major banks are already issuing stablecoins for payments and payroll, with plans to expand their presence in the stablecoin market in 2025.

Traditional banking institutions are actively increasing their footprint in the stablecoin space, according to Bloomberg. This trend is largely driven by the financial success of Tether , the issuer of USDT.

Notable banking players already participating in the stablecoin market include:

• Societe Generale (France’s banking giant);
• ODDO BHF (European financial group);
• Deutsche Bank (Germany’s largest financial conglomerate);
• BBVA (one of Spain’s leading banking companies), and others.

Most of these institutions are developing digital asset products through their subsidiaries. For example, SG Forge, a subsidiary of Societe Generale, launched the euro-pegged stablecoin EUR CoinVertible (EURCV) in April 2024 and is negotiating with other banks interested in its use. SG Forge also offers a white-label service that enables other banks to issue their own stablecoins.

Visa is also making strides in the space. In October, the company launched the Visa Tokenized Asset Platform (VTAP), targeting corporate clients. Visa is collaborating with BBVA on a pilot stablecoin project slated for release in 2025 and is in discussions about similar initiatives with other banks.

The stablecoin market is also drawing interest from leading FinTech companies. Revolut is exploring the possibility of launching its own stablecoin, while PayPal is actively developing its dollar-pegged stablecoin, PYUSD, for two years.