Stablecoins: A New Frontier for Regional Banks
The GENIUS Act has sent shockwaves through the US stablecoin market, and the largest banks in the US are already reaping the benefits. Regional banks must now consider partnering with crypto startups to bridge the digital divide, provide customers with market access, and share in the booming stablecoin revenues. Failure to do so may result in their exclusion from the market by their larger competitors.
Stablecoins have emerged as a significant source of income, with $33 trillion in annual volume and billions in bank revenue. The opportunity is already being seized, and regional banks cannot afford to miss out. By partnering with regulated crypto startups, they can bypass costly research and development, leveraging the infrastructure of the Big Four to compete in the market.
Risks and Opportunities
The real risk lies in hesitation. As regulation matures and giants secure market share early on, inaction could permanently exclude regional banks from stablecoin payments. The stablecoin market has experienced significant growth, with a record $33 trillion in transaction volume in 2025. JPMorgan’s payments division generated over $4 billion in revenue in the second quarter of last year alone after launching its own token.
Regional banks do not need to dominate the market to benefit from it. By using stablecoins, they can attract new customers, including high earners who rely on cryptocurrency-based payment methods. Attracting and retaining customers is a significant challenge for these banks, making stablecoins a strategic priority to expand their customer base.
Partnerships and Innovation
Many regional banks are behind in digitizing the industry, lacking the billion-dollar budgets of Bank of America and JPMorgan to invest in new technologies. Partnering with agile crypto startups can help bridge the digital divide, providing customers with quick and cost-effective access to the stablecoin market. This approach has already proven successful, with JPMorgan, Standard Chartered, and others partnering with crypto companies like Coinbase, Circle, and Digital Asset.
Non-traditional institutions like Stripe have also taken this route, acquiring stablecoin orchestration platforms to expand their offerings. Regional banks must follow suit to share in the spoils. While there are risks associated with the stablecoin market, these can be mitigated by working with regulated startups that have technical frameworks in place.
The greater danger for regional banks is inaction. As larger banks capture early market share, regional banks have fewer options to capitalize on consumer demand. With the clarification of the regulatory framework and the strengthening of anti-money laundering protections through the GENIUS Act, stablecoins have become an integral part of the global payments landscape.
According to Adam Turmakhan, CEO of TurmaFinTech, a Florida-based fintech startup, “Regional banks must prioritize stablecoins to expand their customer base and stay competitive.” As the stablecoin market continues to grow, regional banks must adapt to stay relevant. By partnering with crypto startups, they can navigate the complexities of the stablecoin market and provide customers with the services they demand.
Adam Turmakhan is CEO of TurmaFinTech, a Florida-based fintech startup that provides customized customer data platforms for community banks and credit unions across the United States.
Read more about the importance of regional banks partnering with crypto startups in the original article on Crypto.News.
