Key Takeaways:
- Banco Santander is exploring the launch of both dollar- and euro-pegged stablecoins and expanding crypto services to retail clients.
- The initiative reflects a broader trend of major banks pursuing stablecoins amid shifting U.S. regulatory attitudes under the Trump administration.
- Yield-bearing stablecoins face political and institutional pushback over concerns they could undermine traditional banks’ roles and profitability.
Banco Santander is exploring the development of a stablecoin and expanding its crypto services to retail customers, according to a Bloomberg report on May 29.
The initiative is still in its early stages, with the bank considering both dollar- and euro-pegged digital tokens.
Banco Santander is mulling an expansion in digital assets, including early-stage plans to offer a stablecoin as well as access to cryptocurrencies for retail clients https://t.co/eUpdnen3CX
— Bloomberg (@business) May 29, 2025
Santander’s move reflects a broader shift among major financial institutions—like JPMorgan, Citigroup, and Bank of America—toward stablecoin development, driven by favorable regulatory changes under President Donald Trump’s administration.
Supporters argue that stablecoins can boost financial inclusion, enhance payment systems, and strengthen the global role of the U.S. dollar.
However, the banking sector remains divided.
Some institutions resist the trend, warning that yield-bearing stablecoins could drain deposits from traditional banks.
U.S. Senator Kirsten Gillibrand voiced concerns during the March 2025 DC Blockchain Summit, stating that interest-bearing stablecoins may discourage deposits in local banks, thereby weakening their ability to provide loans.
NYU professor Austin Campbell echoed this, saying yield-offering stablecoins pose a direct threat to the traditional banking model, which relies on low-interest deposits.
Legislative efforts to regulate or delay stablecoin adoption are underway in the U.S. Senate, reflecting broader tensions between digital finance innovation and the protection of legacy banking systems.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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