Global Bank Explores Crypto Expansion

Banco Santander SA is advancing plans to introduce cryptocurrency services for retail customers, with preliminary discussions underway regarding a euro and dollar-pegged stablecoin. The Spanish banking giant's move follows similar explorations by JPMorgan, Bank of America, and other major financial institutions seeking to capitalize on recent pro-crypto regulatory developments in the United States.

The Stablecoin Gold Rush

Financial analysts observe a 【20% quarterly increase】 in bank-backed stablecoin projects since Q1 2025, coinciding with President Trump's administration clarifying digital asset regulations. Proponents argue these dollar-linked tokens could strengthen USD hegemony while improving payment efficiency — potentially increasing capital velocity by 【30-40%】 according to Federal Reserve studies.

Banking's Existential Dilemma

——The real battle isn't about technology, but control of the money supply—— notes NYU professor Austin Campbell. Yield-bearing stablecoins particularly alarm traditional banks, as they threaten the foundational model of fractional reserve banking. Senator Kirsten Gillibrand warned these instruments could divert 【$150 billion】 annually from community bank deposits, potentially crippling small business lending.

Regulatory Crossroads

While Santander's plans remain in early stages, the banking industry remains sharply divided. Lobbyists successfully blocked recent stablecoin legislation, fearing erosion of 【$700 billion】 in annual banking profits. Interestingly, the UK's Financial Conduct Authority has taken a contrasting approach by soliciting public input on stablecoin frameworks — a move that could position London as a digital asset hub.

The Innovation Paradox

Campbell's research reveals an ironic tension: banks embracing "vanilla" stablecoins while fighting yield-bearing versions. This selective adoption suggests institutions recognize blockchain's efficiency gains 【cutting settlement times from days to minutes】 but resist disruptive profit models. As of press time, Santander hadn't disclosed whether its proposed stablecoin would incorporate yield features.

Global Implications

The stablecoin debate extends beyond banking profits. Emerging market advocates highlight how dollar-pegged tokens could provide 【1.7 billion unbanked adults】 access to global finance. However, critics warn this might exacerbate currency substitution risks in developing economies already struggling with dollarization pressures.