Banks, card giants build 24/7 blockchain rails

The regulatory landscape in 2025 underwent a pivotal transformation under the Trump administration, with clarifications such as those embedded in the Genius Act providing a clear and crypto-friendly framework that emboldened major financial institutions to enter the stablecoin and blockchain payments arena. This shift was widely recognized as a significant boon for the industry, with key players like JP Morgan, Wells Fargo, Visa, and Mastercard pivoting from cautious observers to active participants, motivated by the promise of faster, cheaper transactions that could replace traditional wire transfers costing upwards of $40 and taking days to settle. As one analysis noted, "the Trump administration has done more for crypto. It's probably been the biggest boon that crypto could ask for... all the companies big banks and institutions they're all leaning in now... knowing the regulations are coming."

By late 2025, this regulatory encouragement translated into tangible institutional engagement, with JP Morgan publicly embracing tokenization and blockchain payments as a core operational shift. CEO Jamie Dimon highlighted the scale of this transition, stating, "We moved $16 trillion the other day in one day... So tokenization, blockchain is real... We're working on stablecoin and a JP Morton. We have a JP Morton deposit already. And think of it as a token, which is a deposit." Simultaneously, other banking giants like Bank of America, Wells Fargo, and Citigroup actively engaged with lawmakers to shape crypto market legislation, signaling a collaborative approach to embedding blockchain solutions within regulated frameworks.

The momentum extended beyond traditional banks as fintech leaders such as Stripe and consortiums like Open USD began integrating stablecoins into their operations, marking a broadening institutional embrace of blockchain payments. Early partnerships exemplified this trend, notably Payoneer's collaboration with Citibank leveraging Citi Token Services to pilot blockchain-enabled treasury transfers that enhanced transaction speed, automation, and transparency while mitigating cash management and foreign exchange risks. These initiatives underscored a shared industry commitment to leveraging stablecoins for operational efficiency and global service reliability.

Despite the enthusiasm and pilot projects, the transition for large banks toward full-scale blockchain adoption remained a gradual process, often likened to "turning a cruise ship." While JP Morgan and others began tokenizing deposits and exploring intra-bank settlements on blockchain networks, the strategic shift toward sourcing or providing liquidity on public blockchains was still in its nascent stages by early 2026. This deliberate pace reflected the complexity of integrating legacy systems with innovative technologies, yet the foundational regulatory and political shifts of 2025 had undeniably set the course for a profound evolution in institutional finance.

The final quarter of 2025 to early 2026 witnessed a dramatic acceleration in stablecoin adoption and infrastructure expansion, catalyzed by major fintech acquisitions and strategic partnerships. Stripe’s acquisition of Bridge compressed what would have been five years of adoption into a single year, rapidly shifting stablecoin use from niche developers to large fintechs, banks, and e-commerce treasury teams, while Bridge’s platform enhanced cross-border payments with faster, more secure fiat-denominated stablecoin solutions. Concurrently, legacy institutions like Swift partnered with Consensys to develop Ethereum-aligned blockchain payment systems enabling 24/7 instant interbank cross-border settlements, supported by a coalition of over 30 major banks including Bank of America and Citi, signaling a historic embrace of blockchain by traditional finance.

Mainstream banks and fintechs deepened their collaboration to modernize payment rails, exemplified by Citi and Coinbase’s Q4 2025 partnership to integrate blockchain infrastructure and stablecoin technology for institutional clients across 94 markets. This alliance not only aims to enable faster, programmable, and cost-efficient 24/7 cross-border payments but also marks a fundamental shift in banking attitudes toward blockchain, with Citi preparing to launch crypto custody services in 2026. Such moves are poised to set industry standards amid projections of stablecoin market growth from $300 billion to over $1 trillion within five years, intensifying competitive pressure on legacy networks like SWIFT to innovate or risk obsolescence.

Stablecoin payment cards, particularly those leveraging USDC, have emerged as top-tier neobank products gaining significant traction by late 2025, with fintechs like Revolut rolling out zero-fee, one-to-one stablecoin conversions backed by regulatory licenses such as MiCA. These innovations reduce friction in moving funds on and off blockchain, benefiting SMEs in volatile economies by cutting foreign exchange spreads and international transfer fees, while fostering a positive-sum ecosystem through interoperable, collateral-backed stablecoins involving major players like BlackRock, Worldpay, and Stripe. This composability and economic alignment underpin a rapidly expanding stablecoin payments landscape poised for consolidation and mainstream adoption in 2026.

Infrastructure expansion continued with major banks exploring stablecoin issuance and blockchain settlement networks, such as U.S. Bank’s late 2025 pilot of a USD-backed stablecoin on Stellar and Polygon Labs’ $250 million acquisition spree to build an 'Open Money Stack' for regulated U.S. stablecoin payments. These developments, alongside emerging stablecoin-specific and corporate-style chains from Western Union and Swift, underscore a shift toward embedding programmable, bank-grade compliance and global settlement capabilities into payment systems. Visa’s stablecoin settlement volume quintupled in a single quarter by early 2026, driven by corporate treasury and cross-border use cases from companies like DoorDash and Klarna, confirming stablecoins’ role as a foundational, real-time settlement layer that integrates seamlessly with existing banking infrastructure without costly overhauls.

By early 2026, major banks had operationalized tokenized deposit services to enhance settlement efficiency and instant cross-border payments, with BNY launching its tokenized asset service utilized by heavyweight firms like Intercontinental Exchange and Circle, while Lloyd’s Bank executed the UK’s first tokenized deposit transaction on the Canton Network. JPMorgan expanded its JPM Coin deposit token to the Canton Network, signaling a strategic push to broaden blockchain utility beyond proprietary ecosystems, and the London Stock Exchange Group introduced DiSH Cash on its Digital Settlement House platform, converting commercial bank money into blockchain tokens for 24/7 settlement—marking a significant bank-led alternative to stablecoins.

Throughout mid-2026, banks accelerated efforts to build interoperable blockchain-based settlement rails as competitive alternatives or complements to stablecoins. JPMorgan’s Connexus platform processed over $3 trillion in volume with $5 billion daily blocks, while Citi partnered with Coinbase to process about $1 billion daily using stablecoins, illustrating divergent strategies within the same race. Meanwhile, multi-asset operating systems like Finzly’s Token Galaxy emerged to unify fiat, tokenized deposits, and stablecoins across multiple blockchains, supported by enterprise-grade security measures such as Multi-Party Computation wallets and integrated KYC/AML workflows, enabling banks to offer programmable, 24/7 money movement while retaining regulatory protections and deposit insurance.

Bank consortia took center stage as The Clearing House announced a shared tokenized deposit network backed by JPMorganChase, Bank of America, Citi, Wells Fargo, and others, targeting a first-half 2027 launch to create interoperable blockchain settlement rails that preserve the regulatory and economic structure of commercial banking. This initiative aims to connect traditional payment rails like RTP and CHIPS with blockchain infrastructure to enable atomic, 24/7 settlement for treasury operations and cross-border payments, directly responding to the $263 billion stablecoin market and regulatory pressures such as the GENIUS Act. Despite coordination challenges and competing projects within the consortium, leaders like Sal Karakaplan emphasize that this network will give hesitant banks a compelling reason to adopt tokenized deposits, complementing rather than competing with stablecoins depending on use cases.

Individual banks are aggressively advancing proprietary and collaborative tokenized deposit platforms to capture corporate treasury and institutional payment flows. Citi’s CTS platform surpassed $1 billion in daily transactions across multiple markets by mid-2026, enabling real-time cross-border transfers without regional fund pre-positioning and abstracting blockchain complexity from users. JPMorgan’s Kinexys, formerly JPM Coin, processes billions daily and integrates tokenized money market funds and securities, while Wells Fargo announced plans to launch 24/7 USD–GBP tokenized deposits on its proprietary blockchain in fall 2026, aiming for interoperability with The Clearing House’s network. These efforts underscore a strategic shift from blockchain as a conceptual experiment to production deployments with committed capital, partner ecosystems, and clear target dates, all designed to retain deposits within regulated banking frameworks while offering crypto-like programmability and settlement speed.

Throughout late 2025 and into 2026, US regulatory clarity around stablecoins and digital assets has advanced significantly, marked by landmark developments such as the SEC closing its probe against Ondo Finance and the OCC issuing Interpretive Letter 1188, which allows national banks to act as “riskless principal” intermediaries in crypto trading. These regulatory milestones, alongside ongoing dialogues between major banks like Bank of America, Wells Fargo, and Citigroup with policymakers, signal a maturing framework that balances innovation with consumer protection, setting the stage for broader institutional adoption and integration of tokenized money within traditional finance.

Institutional infrastructure has evolved rapidly with major financial players operationalizing tokenized deposits and stablecoin platforms that enable seamless fiat-to-crypto movement and programmable payments. JP Morgan’s launch of the JPMD deposit token and tokenized money-market fund, SoFi Bank’s issuance of SoFiUSD—a fully reserved stablecoin held directly at the Fed—and Polygon Labs’ strategic acquisitions to build a regulated stablecoin payments platform exemplify this maturation. These initiatives not only reduce counterparty risk but also demonstrate how digital assets are being embedded into existing compliance and settlement frameworks, with clients like BlackRock, HSBC, and Visa actively participating in these ecosystems.

The granting of conditional bank charters to digital asset platforms such as Stripe’s Bridge, along with the launch of institutional-grade custody and settlement services like Citigroup’s Custody+ suite, underscores a pivotal shift in the financial landscape. Bridge’s OCC-approved national trust bank charter enables custody and issuance of stablecoins under traditional banking safeguards, while Citi’s $2 billion annual investment in Custody+ has slashed corporate action processing times by 92%, integrating 24/7 tokenized deposit movement and planning Bitcoin custody services. These developments reflect a convergence where digital assets are no longer siloed but fully integrated into mainstream financial infrastructure, facilitating real-time settlement and enhanced operational efficiency.

Regulatory guidance from the SEC and CFTC in early 2026, including the joint interpretive statement categorizing crypto assets into five distinct groups and excluding activities like mining and staking from securities classification, has been instrumental in reducing ambiguity that previously hindered institutional participation. This clarity, coupled with political support emphasizing US leadership in crypto and ongoing efforts to balance innovation with oversight—as evidenced by the collapse of the CLARITY Act and subsequent industry responses—has catalyzed a regulatory inflection point. Companies like Circle and Coinbase, which built compliant infrastructure early, stand to benefit most as stablecoins and tokenized assets become foundational to the emerging digital dollar economy.

By early 2026, Visa and Mastercard had firmly transitioned stablecoin settlement from experimental pilots to mainstream payment network features, exemplified by Stripe’s Bridge expanding its Visa-backed stablecoin card program to over 100 countries and SoFiUSD’s integration across Mastercard’s network. While Visa adopted an infrastructure-neutral strategy supporting multiple stablecoins and blockchains through Bridge’s abstraction layer, Mastercard concentrated on institutional trust by anchoring to a regulated, Fed-reserve-backed stablecoin issued by SoFi, highlighting divergent yet complementary approaches to embedding tokenized money into traditional rails.

March 2026 marked a pivotal moment as Mastercard launched its Crypto Partner Program, uniting over 85 leading crypto firms and financial institutions—including Binance, Circle, PayPal, and Ripple—to collaboratively develop scalable blockchain payment solutions focused on real-world use cases like cross-border remittances and global payouts. This initiative underscored a strategic industry shift from crypto hype to genuine integration, with Mastercard and Visa embracing stablecoins as viable alternatives to traditional payment rails, signaling a collective move toward production-grade, API-driven payment ecosystems.

Mastercard’s acquisition of BVNK in March 2026 and Visa’s launch of a unified API for intelligent authorization in May demonstrated a concerted effort by payment giants to evolve beyond mere transaction processing toward becoming orchestration layers that blend traditional card networks with blockchain-based payments. These moves anticipate a future where AI-driven autonomous agents settle payments directly on blockchains, making control over the transaction routing layer critical; Visa’s API-first infrastructure simplifies global payment orchestration with AI risk scoring, while Mastercard integrates trust, compliance, and user experience into hybrid payment models.

By mid-2026, collaboration intensified as Stripe, Visa, and Mastercard formed a unified stablecoin platform, shifting competition from token issuance to owning scalable settlement infrastructure, while major banks like JPMorgan and Citi prepared to launch tokenized deposit networks in 2027. This convergence reflects a broader industry consensus that the real race is for control over the payment 'pipes' rather than minting coins, with fintechs like Revolut embedding stablecoin access into banking services and Visa’s Stablecoin Platform offering a managed environment to simplify institutional adoption—signaling a maturation from fragmented experimentation to integrated, production-grade ecosystems.

By 2030, the tokenized money and payments market is poised to become a multi-trillion-dollar industry, fueled by an intense race among mainstream banks and fintech giants like Visa, Mastercard, Western Union, and Circle to control the digital dollar infrastructure. This convergence is marked by significant partnerships and expansions—Citigroup’s collaboration with Coinbase, Visa’s network growth across multiple blockchains, and Western Union’s USD-pegged stablecoin launch on Solana—all underscoring a strategic shift from isolated token innovation toward building robust, interoperable payment rails. Yet, despite the proliferation of new stablecoins and payment-focused blockchains such as Tempo and Codex, dominant incumbents like Tether remain formidable, illustrating the high barriers newcomers face in capturing meaningful market share within this rapidly evolving ecosystem.

Regulatory clarity is emerging as a critical catalyst for mainstream adoption and innovation in stablecoins and tokenized deposits, with frameworks like the EU’s MiCA, the GENIUS Act in the U.S., and regulatory initiatives across Asia and Latin America shaping a more defined landscape. Industry leaders anticipate that evolving definitions—such as the potential introduction of yield or savings stablecoins beyond the current narrow bank-backed models—will broaden use cases and institutional participation. However, operational, regulatory, and adoption challenges remain substantial, including the need for organizations to build internal Web3 expertise and navigate complex compliance demands, as highlighted by executives noting the transition from regulatory uncertainty to the practical hurdles of on-chain integration.

The future of money movement innovation hinges on the seamless integration of stablecoins and tokenized assets into existing financial systems, with early adopters reaping significant cost savings—often between 60% and 90% on payment flows—and establishing supplier network lock-in that could pressure late entrants. This infrastructure-driven evolution is exemplified by companies like Circle and Stripe, which are building parallel, more efficient, and better-regulated payment rails that challenge traditional systems such as SWIFT. Simultaneously, institutional players including JPMorgan with its Kinexys blockchain and BlackRock’s tokenization of money market funds are pioneering the tokenization of real-world assets, signaling a structural shift where blockchain usage moves from speculative to productive, underpinning a new financial ecosystem.

Despite bullish momentum and growing transaction volumes—Visa’s stablecoin settlements surged fivefold in a quarter to $5 billion—significant challenges persist that will shape the pace and nature of adoption. These include ensuring operational reliability, maintaining trust and regulatory compliance, and addressing systemic risks within decentralized finance. Moreover, the industry must balance innovation with geopolitical considerations, such as preventing foreign dominance in digital dollar infrastructure, while fostering gradual organizational adoption where CFOs and treasurers cautiously pilot use cases and build Web3 expertise over time. As UBS CEO Sergio Ermotti declares blockchain 'the future of traditional banking,' the race is not only about technology but also about navigating complex institutional and regulatory landscapes to realize the promise of programmable, 24/7 digital payments.