Coinbase Teams with Moov to Bring Stablecoins to Thousands of Community Banks
Coinbase has announced a partnership with payments infrastructure firm Moov to bring stablecoins to over 1,000 US community banks and credit unions.
The partnership allows these institutions to accept, settle, and custody stablecoins without having to build their own plumbing.
This move comes just before the Senate's cloture vote on the Digital Asset Market Clarity Act, which aims to provide regulatory clarity for the stablecoin market.
Coinbase is framing this as a way to hand regulated crypto infrastructure to institutions that don't have the balance sheet or appetite to become crypto companies themselves.
The Independent Community Bankers of America has warned that allowing interest or yield on stablecoin holdings could drain $1.3 trillion in deposits from community banks, with a knock-on effect of $850 billion reduction in lending.