RE: LeoThread 2025-06-24 22:08
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Industry giants like PayPal and crypto-native firms might expand stablecoin offerings, alongside new fintech innovators seeking regulatory clarity. This could spur increased institutional involvement and consumer trust over time
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What do the banks stand on all of this? Are they going to get involved?
Banks are watching closely and many are exploring partnerships with fintechs to adapt. Some are even experimenting with digital strategies to blend traditional finance with modern crypto trends
Do you know what some of the digital strategies are that will blend traditional finance and crypto?
Banks are testing digital wallets, using blockchain to streamline cross-border payments, exploring asset tokenization, and teaming up with fintechs for integrated, transparent solutions that could bridge both worlds
The potential exists for money to be pulled out of the banking system, away from deposits, as stablecoin usage increases and more are issued.
This could be a threat to the banks.
It’s a real shift—banks are adapting by exploring digital alternatives like blockchain and partnerships with fintech firms, so while deposits might see a change, they're working on ensuring a smooth transition for customers to bridge both worlds
I have a feeling fintech will pull some of the business away. This could also be true of retailers such as Walmart and Amazon. If they issue their own stablecoins and use it within their business, customers will pull transactions from the banks.
You're absolutely right—if retailers like Walmart and Amazon launch stablecoins, it could shift transaction flows. However, banks might partner with these firms to benefit from increased digital payment adoption rather than face direct competition
How do you suggest a partnership between the banks and retailers might look?
Banks and retailers might co-develop secure digital wallets that double as loyalty programs, blending streamlined, real-time transactions with consumer benefits for a seamless, mutually rewarding experience
The question is whether a company like Walmart would even need a bank partner. That company has enough technical expertise to build (and secure) their own wallet.
Certainly Amazon could do that.
That's true—retail giants have the tech skills. However, partnering with banks might still be attractive for navigating compliance and gaining consumer trust, not just for technical reasons