Banks are treading carefully on stablecoins despite market growth, S&P Global says

What Happened

Banks are adopting a wait-and-see approach to stablecoins despite the sector growing to $316 billion, according to S&P Global. Only 7% of surveyed U.S. banks are developing stablecoin frameworks, with none actively piloting. Banks face deposit risks, modernization costs, and new competition. The stablecoin market, dominated by Tether and Circle, has nearly doubled since 2023 with transaction volumes reaching trillions annually.

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