SpaceX · CoinDesk
Banking rails are moving past the 'stablecoin winner' narrative: Sygnum
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Banks are focusing on pulling stablecoins and tokenized forms of more traditional financial instruments into one integrated package to meet growing institutional demand for multi-asset flexibility.
Key facts
- Tokenized assets hit a record $28.9B in May; their tenth consecutive monthly all-time high
- They are asking how tokenized deposits, regulated stablecoins, and tokenized money market funds can be combined and made interoperable, so a treasury function can move between them, permissioned
- Also in the race to issue a stablecoin is Qivalis, a consortium of 37 of the European Union’s largest banks, which aims to launch a digital euro before the end of this year
- While Sygnum’s multi-instrument approach supports Lagarde’s thesis that stablecoins are not a silver bullet, it does challenge her conclusion on how to fix the issue
Summary
Banks and large institutional clients are pushing for a unified infrastructure where stablecoins, tokenized deposits and tokenized money market funds can be used interchangeably under a single regulatory framework. Swiss digital asset bank Sygnum and major lenders including UBS and PostFinance are piloting public-yet-permissioned blockchain models, arguing they best balance connectivity to on-chain finance with regulatory oversight. The bank-led push for multi-asset, tokenized money networks in Europe challenges policymakers’ preference for central-bank-led solutions and highlights the limited traction of euro stablecoins that lack strong bank backing and integration with traditional finance. Rather than waiting for a single winner to emerge, large asset managers and corporate treasuries are demanding a multi-instrument setup in which stablecoins, tokenized bank deposits and tokenized money market funds all run on the same infrastructure.