As second-quarter earnings season unfolds, a clear divide is emerging among global financial institutions over the role of stablecoins in the future of banking, with some executives embracing tokenised assets as transformative and others warning of regulatory chaos and reputational risk.
Banking giants diverge on digital assets
During recent earnings calls, major US and European banks offered contrasting outlooks on stablecoins—cryptocurrencies pegged to fiat currencies such as the US dollar or euro. JPMorgan Chase CEO Jamie Dimon reiterated his cautious stance, saying stablecoins “remain untested at systemic scale” and could pose “new forms of financial contagion” if not tightly regulated.
By contrast, Citi’s CFO Mark Mason described stablecoins as “a critical bridge between traditional finance and blockchain-based payments,” citing pilot projects in cross-border settlements that have reduced transaction time and cost. Goldman Sachs said it was continuing to explore tokenised asset infrastructure but stressed that compliance and liquidity remain barriers.
Fintech firms and neobanks more optimistic
Outside the traditional banking sphere, digital-first institutions expressed stronger support. Revolut, in its Q2 update, reported a significant uptick in stablecoin-linked transactions, particularly in Latin America and Southeast Asia, where volatile local currencies have accelerated adoption. CEO Nik Storonsky told investors that stablecoins “unlock scalable and secure access to global financial systems for underserved populations.”
Similarly, Block’s Jack Dorsey said stablecoin rails were “central” to future peer-to-peer commerce, while Stripe highlighted backend integrations that now process stablecoin payments natively alongside fiat. These views stand in stark contrast to more conservative regional banks that warned against moving “too far, too fast” into digital assets.
Regulators loom large over sentiment
The regulatory backdrop featured prominently in earnings discussions. Several CEOs noted growing uncertainty around how stablecoins will be classified—whether as money, securities, or new financial instruments. The EU’s MiCA regulation and the upcoming US stablecoin bill were repeatedly cited as potential turning points.
Bank of America said it was “actively engaged with regulators” but remained cautious, while HSBC warned of a “fragmented global landscape” that could create arbitrage and systemic risk. Meanwhile, Circle and Tether, issuers of two of the largest dollar-backed stablecoins, have called for uniform global frameworks to promote responsible adoption.
Investor sentiment reflects the split
Markets mirrored the divergence in sentiment. Traditional banks that de-emphasised stablecoin exposure were largely stable post-earnings, while fintechs with bullish digital asset strategies saw minor bumps in share price. Analysts say investors remain unsure whether to treat stablecoins as a speculative play or a structural shift in how banking infrastructure will evolve.
The broader crypto market has shown moderate interest, with leading stablecoins maintaining strong liquidity even amid a summer lull in trading activity. Ethereum and Solana developers continue to build new applications around stablecoin settlements, while some institutional asset managers quietly test stablecoin-based bond issuance.
An unresolved debate
With the second half of the year expected to bring further legislative developments and technological pilots, the question of whether stablecoins will become the bedrock of future banking remains open. What’s clear is that the divide between incumbents and innovators is growing, and earnings season has made that split more visible than ever.
REFH – Newshub, 22 July 2025
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