<ul><li>Stablecoins, such as cryptocurrencies pegged to fiat currencies, like the U.S. dollar, have the potential to disrupt the banking industry and drive innovation.</li><li>Adoption of stablecoins may pose a challenge to banks as they could potentially reduce the amount of customer deposits, on which banks rely to fund loans and support economic activity.</li><li>However, the use of stablecoins for domestic payments in the U.S. is currently low, with most users preferring banks to look after their money. Banks can integrate with stablecoins to evolve their roles in the changing financial landscape.</li><li>Some banks are already taking steps to engage with stablecoins, such as JPMorgan launching JPM Coin, a blockchain-based stablecoin, and BNY Mellon building custody solutions for digital assets.</li></ul>

Are Stablecoins a Threat or an Opportunity for Banks?

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