Traditional banks such as Societe Generale, Standard Chartered, and Revolut are seeking to enter the stablecoin market, following Tether's decision to discontinue its EURt stablecoin. Tether has dominated the stablecoin market for years, but as traditional finance embraces crypto, banks are exploring stablecoin issuance. Tether's discontinuation of the EURt stablecoin has created an opportunity for banks to fill the gap. Banks like Societe Generale-Forge (SG-Forge), Oddo BHF, BBVA, and Revolut are all exploring euro-backed stablecoins. The new Market in Crypto-Assets (MiCA) regulations in Europe have provided a clear regulatory framework, making it easier for companies and banks to issue stablecoins. Visa has also launched a tokenization network, and BBVA is among the banks piloting Visa's technology. US banks are expected to join the stablecoin market once legislation is in place. However, there are challenges for banks using stablecoins, including liquidity coverage ratios and regulatory clarification. Central Bank Digital Currencies (CBDCs) also pose a threat to bank-issued stablecoins. Despite these challenges, banks see the potential in entering the stablecoin market due to Tether's significant profits.



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