Stablecoins Integrate Deeply into Traditional Banking Systems
Stablecoins were initially touted as a way to bypass traditional banking systems. However, companies that have successfully scaled their use have ended up integrating themselves deeper into the banking system than expected.
The acquisition of Bridge by Stripe for $1.1 billion is a prime example. Bridge's core product involves 'orchestrating banks', and its stablecoin settlement capabilities rely heavily on correspondent banking relationships.
Citi has also launched a crypto custody service, while Standard Chartered is testing stablecoin settlement in Singapore. These developments demonstrate that institutional-grade players ultimately converge on the same architecture as traditional banking systems.
Stablecoins only settle the 'middle leg' of cross-border payments, which involves moving value across borders from one institution to another. However, every transaction flow originates and terminates in fiat currency, making banks irreplaceable as the entry point, compliance anchor, and local rails for every market payments touch.
The scale gap between stablecoin payments and traditional cross-border transactions is stark. While the cross-border payments market reached $208 trillion in 2025, real stablecoin payments accounted for just 0.02% of global payment volume.