The progress in the stablecoin sector is attracting the attention of major global banking institutions, with Banco Santander SA considering extending cryptocurrency services to retail customers and launching a stablecoin product. This initiative is part of a broader movement that sees various banking giants exploring innovative digital solutions, laying the groundwork for a new era of the financial system.
Banco Santander and the push towards retail stablecoin
Banco Santander is carefully studying the creation of stablecoins pegged to both the dollar and the euro, although still in the initial stages of design. The focus is on digital fiat tokens that offer stability and ease of use, primarily targeting retail customers. The adoption of these financial assets could significantly improve efficiency in payment systems, reducing transfer times and expanding financial access to a broader audience.
The growing interest in stablecoin stems from their ability to extend the dominance of traditional currencies, especially the US dollar. They represent a means to increase the speed of capital in payments, promoting financial inclusion. Furthermore, they allow small businesses to access global capital markets more easily, removing some of the traditional barriers imposed by the classic banking system.
Large institutions like JPMorgan, Bank of America, Citigroup, and Wells Fargo are also considering the issuance of stablecoins. This interest reflects an improvement in the regulatory framework in the United States, which is encouraging banks to explore innovative solutions based on fiat tokens.
The resilience of the traditional banking system
Despite the enthusiasm, a significant part of the banking sector is skeptical or even opposed to the proliferation of stablecoins, especially those that offer yield to users. The perceived risks mainly concern the erosion of banking profits and the loss of market share in the traditional financial sector.
Banking lobbies in the United States and some members of the Senate have attempted to block laws favorable to the issuance of stablecoins, justifying their refusal with the fear that digital tokens could draw depositors away from traditional banks. A critical issue concerns yield-bearing stablecoins, which are tokens that offer interest directly to users, potentially more advantageous compared to the low or nonexistent rates offered by retail banks.
Senator Kirsten Gillibrand stated clearly at the DC Blockchain Summit in March 2025:
“If a stablecoin issuer can pay interest, why would a consumer ever leave their money in the bank?”
He emphasized how families and small businesses depend on bank loans, and that yield-bearing stablecoins could risk undermining this essential market.
A traditional banking system under pressure
Austin Campbell, professor at New York University, explained the reasons for the skepticism towards yield stablecoin. He argues that offering rewards to consumers profoundly alters the banking model based on fractional reserve deposits, which allows banks to operate with low-cost or interest-free deposits to grant loans. This model is the foundation of modern retail banking.
Campbell also criticized regulators pushing for restrictive rules for yield-bearing stablecoins, stating that such policies exclusively favor billionaires and bank executives at the expense of common consumers.
Stablecoin fiat: a balance between innovation and regulation according to Santander
The increased use of stablecoins pegged to fiat currencies represents a challenge for the global financial system, which must balance incentivizing innovation and protecting economic stability. The entry of banks like Banco Santander and other giants into the stablecoin market could accelerate the digitalization of payments, but also requires a clear regulatory strategy.
If banks manage to efficiently integrate stablecoins into their offerings, they could redefine the way people and businesses manage money and credit. However, pressures from the traditional sector and political resistance could slow down this process.
Furthermore, regulation plays a crucial role in determining which characteristics stablecoin can have, especially regarding the returns they can offer. A strict regulatory framework could limit the spread of yield-bearing stablecoin, keeping the center of the financial system in the hands of traditional banks.
The interest of Banco Santander and other prestigious institutions marks an important step towards the modernization of the global financial system. Stablecoins, by their nature stable and digital, have the potential to transform economic relationships, enabling faster and more accessible payments. In parallel, the debate on economic and ethical implications highlights the complexity of the transition towards a new monetary infrastructure.
Financial inclusion and opportunities for businesses
The adoption of stablecoins could promote the banking of millions of people still excluded from traditional financial services. Furthermore, for small and medium-sized enterprises, it could pave the way to new markets and more favorable conditions for accessing global capital.
The ongoing developments prompt reflection on the importance of balanced regulation, which protects consumers and the financial system but at the same time does not stifle innovation. Paying close attention to these dynamics allows businesses, institutions, and investors to anticipate changes and opportunities.
The future of stablecoins, therefore, is an open field of confrontation between technological innovation and established interests, with Banco Santander among the protagonists of this transformation. As of today, it remains crucial to follow regulatory and market developments to understand how these new financial assets will influence the global system in the coming years.
