Big Banks' Role in Web3 Adoption

Wall Street firms are doubling down on digital assets. Last week's Q2 2025 earnings season exposed a clear divide: while some major banks and firms were relatively silent on digital assets, others positioned themselves as crypto pioneers. Recent legislative developments created more regulatory clarity and running room for financial institutions to explore institutionalizing digital assets, and the market leaders have been front running investments and partnerships and are wasting no time staking leadership claims in the space. Which firms are positioning, partnering, and investing to establish a lead? BlackRock has positioned itself as a leader in shaping the future of finance, with increasing involvement in digital assets, tokenization, and managing stablecoin reserves. Beyond the earnings rhetoric, what is BlackRock doing to drive this innovation? BlackRock's business relationships reveal the depth of their digital asset strategy. Their partnerships span cryptocurrency custody (Coinbase, Anchorage Digital), stablecoin backing (Ethena), and blockchain infrastructure (Injective). They've also invested in digital asset trading platforms like Flowdesk and fintech innovators including Upvest, Texas Stock Exchange, and Sokin; creating a comprehensive ecosystem for digital asset integration across trading, custody, and tokenization. Insights on other major players' digital assets strategies from CB Insights' Earnings Analyst agent insights on their Q2 earnings calls: → Citigroup emerged as another aggressive adopter, with CEO Jane Fraser expressing "high confidence and enthusiasm" about Citi Token Services' ability to provide "multi-asset, multi-bank, cross-border, always-on solutions without needing to partner with other banks." → BNY Mellon and State Street focused heavily on stablecoin infrastructure, with BNY serving as "reserve custodian for Société Générale's first USD stablecoin in Europe" and "primary custodian for Ripple's US stablecoin reserves." State Street's CEO highlighted how "tokenization of money market funds enables uses of these assets in a different way than originally anticipated." CB Insights' Earnings Analyst agent help identify these strategic pivots immediately after calls. Want insights analysis on the major tech firms announcing earnings this week? Comment "Mag7" below for free access to CB Insights' Earnings Analyst breakdown of each Mag7 Q2 2025 quarter and where they are headed.

Are the US banks about to go big on staking? Many banks across the world have been running crypto PoCs and dipping their toes into the web3 waters for a few years now, even if they haven’t publicly spoken about it. Some of the most well known projects include: --JP Morgan’s stablecoin JPMcoin which they created to enable instant cross-border payments and settlements between institutional clients. --Santander’s $20m bond issuance on the Ethereum blockchain back in 2019 --UBS’ CBDC exploration alongside the Swiss National Bank and launching their Digital Cash pilot in 2024 And banks such as Bank of America, Standard Chartered and UnionBank in the Philippines have all expressed interest or are exploring what a stablecoin offering may look like for them. In general the banks have focussed on the topics of tokenisation, cross-border payments and CBDC’s (although mainly at the central bank rather than commercial bank level). However another growing area for banks is crypto custody and offering crypto services directly to clients. Just today, Spanish bank BBVA got regulatory clearance to provide BTC and ETH trading services to clients and this brings it alongside Standard Chartered in the EU and BNY Mellon in the US who have offered crypto custody since 2022. Offering crypto custody feels like it should be well within the comfort zone for banks since they keep your fiat money safe, so why not your digital assets? However with a well established crypto custodian ecosystem and an emphasis of self custody across both the retail and institutional space, plus a still developing regulatory environment, the banks have been cautious about jumping in with both feet. From a specific US angle, with Operation Chokepoint 2.0, aggressive SEC enforcement and pernicious approaches like SAB 121 it was no wonder that many US banks were sat on the crypto sidelines. However the SAB 121 bulletin has now been repealed; meaning that crypto holdings won't be recognised as a liability on a bank’s balance sheet, the SEC is under new management and has already dropped 11 pending litigations, and Operation Chokepoint 2.0 is being investigated - so the crypto environment for US banks is looking very different. What’s more the OCC recently published its Interpretive Letter 1183 that gives the official green light to US banks who want to engage in “crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks”. If we start to see more banks offering crypto custody services to their client base then staking is likely to follow since it offers a low-risk way of generating additional yield - the crypto version of an interest bearing savings account! We may start to see banks wanting to run their own validators - although I suspect they will likely engage with staking providers rather than wanting to run the hardware and software for each chain, and to avoid needing to hire teams to keep up with the upgrades on the chains.

For all the billions in venture capital poured into crypto over the past decade, almost no one has built anything useful. DeFi? Mostly scams, speculation, and leverage loops. Web3 wallets? A UX nightmare. “Disrupt the banks”? Turns out, nobody wants to trust their money to Discord mods. Ironically, it might be the banks (JPMorgan, Bank of America, Wells Fargo, Citi) that actually deliver on crypto’s original promises. They’re building a joint stablecoin. A programmable “digital dollar” backed by fiat reserves. Not another coin. A new financial operating system. And here’s the twist: This is exactly how the internet evolved. In the early days, the web was supposed to decentralize everything. No gatekeepers. Total freedom. Libertarian idealism. But who made it actually work? Centralized players like Google, Amazon, and Apple who built centralized platforms others innovated on top of. That’s where we are with programmable money. Crypto laid the philosophical foundation. But it may be the banks that lay the infrastructure. Why is this different from everything crypto tried and failed to scale? 1. The programmability is institutional grade. This is smart contract logic with compliance, KYC, and regulatory alignment built in from day one. 2. It plugs into existing payment rails. Zelle, ACH, The Clearing House, FedNow. No need to reinvent trust or onboarding. 3. The settlement finality comes with brand-name credibility. JPMorgan and Citi are not rug-pulling your escrow flow. 4. Enterprises finally get programmable money they can use. For lending, tax withholding, insurance claims, payouts, SLAs. This makes composable finance safe for CFOs. 5. It opens up real global rails. A regulated, dollar-backed token issued by major US banks could become the preferred instrument for cross-border B2B payments. This isn’t crypto’s vaporware stage. This is what happens when programmable money hits compliance, capital, and scale. And that opens up the real opportunity for founders: 1. Build smart, embedded finance on top of a trusted programmable dollar 2. Simplify the payment UX layer for the next billion users 3. Build vertical applications in trade, insurance, tax, and treasury 4. Create privacy-preserving tools for users navigating digital currency systems 5. Build fintech infra for institutions that finally trust the rails The money is finally catching up to the software. The crypto revolution may be real after all. Just not in the way anyone expected. #fintech #stablecoins #crypto #digitaldollar #programmablemoney #defi #banking #futureofmoney #vc #financialinfrastructure

Big moves this week point to a clear trend: traditional finance and crypto are merging in exciting ways. Deutsche Bank is preparing a crypto custody platform for 2026, built with heavyweights like Taurus and Bitpanda. Think of it as Wall Street meets Web3—a secure, compliant way for institutions to manage digital assets. With backing from MiCA (EU) and OCC (U.S.), it’s not just a pilot—it’s a statement that crypto custody is moving out of the shadows. On the startup side, Erebor Crypto Bank is launching for AI, blockchain, and defense firms—helping fill a void left by traditional banks. Meanwhile, tokenized stocks are gaining traction. Major names like Coinbase and Robinhood are tokenizing equities for easier, 24/7, blockchain-based trading. What ties all this together? It’s not hype—it’s utility. Crypto is transitioning from niche to foundational. When secure custody, tailored startup banking, and digital equity trading align, everyday finance starts changing. For people new to the space: this isn’t about flash—it’s about building safe, practical bridges between finance as it was and what it can become. How are these shifts showing up in your world? Whether it’s compliance, tech infrastructure, or new financial tools—share your experience or the impact you see coming.

Large American banks such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are said to be in initial talks to introduce a joint stablecoin—a move reflecting the significant change in the conventional finance sector’s strategy towards digital assets. The proposal behind the initiative from participants such as Early Warning Services (operator of Zelle) and The Clearing House is to establish a dollar-backed digital currency to simplify transactions, especially cross-border payments. This shift demonstrates increasing integration between legacy banks and the crypto industry, particularly since the U.S. Senate pushes forward the GENIUS Act—a bill providing a regulatory framework for stablecoins. Should it pass, it could lead to wider adoption and innovation in the stablecoin ecosystem. Stablecoin demand is increasing as the overall market value rose 20% this year to $245 billion. This indicates the potential to revolutionize financial infrastructures through the use of stablecoins and streamline international money transfers. I view this progress as a turning point. This is a sign of wider adoption of digital currencies and the recognition of the need to incorporate new solutions to address the shifting financial needs. https://lnkd.in/gsDKpTri #payments #digitalcurrencies #financialservices #innovation

Exciting times ahead for digital finance! 🚀 With recent regulatory changes, stablecoins and tokenized deposits are reshaping how money moves around the world. Stablecoins, digital tokens pegged to traditional currencies like the U.S. dollar, have exploded in popularity, reaching a $246Bn market cap in May 2025. Recent U.S. legislation (the GENIUS Act) requires stablecoins to be fully backed by cash or Treasuries, with regular public audits. This new clarity is attracting more banks and big companies to the space, while technical upgrades (like Tether’s integration with Bitcoin’s Lightning Network) are making stablecoins faster and more versatile. Meanwhile, tokenized deposits are also catching on. These are digital versions of bank deposits issued by regulated banks, fully backed and protected by deposit insurance. Major banks like JPMorgan and Citi are piloting tokenized deposit projects, and regulators in Asia, Europe, and the Middle East are rolling out supportive frameworks. Tokenized deposits combine the programmability and efficiency of blockchain with the trust and safety of the banking system. Stablecoins offer speed and global reach, while tokenized deposits bring greater safety, legal clarity, and seamless integration with existing banking services. Both innovations are driving the future of payments, watch this space! 👀 Which one's better? Stay tuned. #crypto #blockchain #web3 #stablecoins #tokenizeddeposits

According to American Banker’s “The Value of On-Chain Survey 2026,” nearly half of all #banks are actively planning to implement or issue publicly accessible #stablecoins. The divergence between large national institutions and community banks is concerning. Approximately 54% of the largest banks are pursuing stablecoin enablement, compared to just 31% of community banks. That gap should not be ignored. It has significant implications for long-term competitiveness, deposits, patents, lending, and relevance in an increasingly "always on" digital financial ecosystem. Stablecoins are not something to fear, but they do require a deliberate strategy. Now is the time for all financial institutions to engage, assess, and define their approach. The ecosystem is also maturing rapidly. A range of providers are already supporting financial institutions in this space, including InvestiFi, Metallicus, Stablecore, Block Time Financial | Web3 Financial Service Software, BankSocial, Visa, Mastercard, DaLand LLC, Coinbax, among others. This is not an endorsement, but an indication that infrastructure and partners are emerging. If this is on your radar, it is worth a discussion to determine where and how it fits into your broader payments and digital asset strategy. Reach out if interested. Link to the AB article: https://lnkd.in/eq5n6YzX #communitybanking #competition #disintermediation #growth SRM UBYX Steve Wasserman, AFPP Prakash Natarajan

HSBC has just taken an important step in the evolution of Tokenised Banking Infrastructure...For the first time, the bank successfully issued tokenised deposits on a public blockchain, achieving atomic settlement through the Canton Network 🏦⚡ What’s interesting isn’t just the tokenisation, it’s the network choice. Several global banks are now converging on Canton for deposit token experiments: ➡️ HSBC – Tokenised Deposit Service ➡️ LSEG – Digital Settlement House ➡️ Lloyds Bank – Tokenised GBP for repo markets ➡️ J.P. Morgan – Deposit token initiatives But why #Canton? Because tokenised deposits are fundamentally different from #Stablecoins. 🪙 #Stablecoins behave like bearer instruments...they can move across open networks without revealing the identity of holders. 🏦 Tokenised deposits, however, represent bank liabilities, meaning each transfer carries sensitive client and counterparty data. Canton’s architecture solves this challenge by allowing atomic settlement while preserving privacy between participants. Another interesting trend is emerging in banking strategy: ✅ Many large banks are now exploring tokenised deposits, sometimes even more actively than stablecoins 📊 ✅ Regulators are also signaling support, deposit insurance frameworks already extend to tokenised deposits 🏛 The bigger picture...Banks aren’t choosing between public vs private blockchains anymore. They are building networks that combine public infrastructure with private-grade privacy and compliance controls. If this model works, it could become the foundation for the next generation of institutional settlement infrastructure! 🚀 #Blockchain #Web3 #Crypto #Compliance #Banking #Fintech #Payments

Money is being rebuilt and banks are taking it on chain. 🚨🌍 A new report by RWA.io explores how tokenized deposits are emerging as a core layer of future financial infrastructure. Key insights that stand out. 📊 Tokenized deposits, stablecoins, and CBDCs are complementary, each serving different roles across payments and financial systems. ⚡ Major banks including JPMorganChase, Citi, BNY, Standard Chartered, HSBC, and Lloyds Banking Group are already running live tokenized deposit solutions. 🌍 Adoption is accelerating fast, with 87% of financial institutions exploring tokenization and digital currencies projected to process up to $13T by 2030. 💡 The opportunity is massive. With $103T in global deposits, even a small shift on chain dwarfs today’s stablecoin market. The real challenge now is interoperability. Tokenized deposits are still tied to individual banks, and scaling requires networks that allow seamless settlement across institutions. This is where the next battle is. Not whether money goes on chain, but how it connects across the global financial system. ⚡🏦

𝗪𝗮𝗹𝗹 𝗦𝘁𝗿𝗲𝗲𝘁’𝘀 𝗥𝗮𝗰𝗲 𝗳𝗼𝗿 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 (Part 2 – In Pipeline • Planning Phase) Clearer on-chain finance frameworks are turning pilots → production—driven by the GENIUS Act’s introduction alongside MiCA and Hong Kong’s regimes. Following the live deployments in Part 1, here’s a snapshot of what’s announced next across market infrastructure and banks: ▶️ 𝗜𝗻-𝗣𝗶𝗽𝗲𝗹𝗶𝗻𝗲  • Nasdaq — Tokenized securities trading on the main exchange  • Morgan Stanley (E*TRADE) — Direct spot-crypto trading for clients  • Bank of America — Dollar stablecoin exploration  • Deutsche Bank — Institutional digital-asset custody  • JPMorganChase — JPMD deposit tokens expanding to public chains  • Goldman Sachs — GS DAP spin-out as industry utility  • Citi — Exploring a bank stablecoin  • Wells Fargo — Consortium stablecoin discussions with majors  • U.S. Bank — Institutional bitcoin custody (ETF support) ▶️ 𝗠𝗮𝗶𝗻 𝗗𝗿𝗶𝘃𝗲𝗿𝘀  • 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗰𝗹𝗮𝗿𝗶𝘁𝘆: stablecoin rules, custody guidance, pilot pathways  • 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗽𝗮𝗿𝗶𝘁𝘆: 24/7 liquidity, atomic settlement, integrated token rails  • 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 & 𝗰𝗼𝘀𝘁: faster issuance/servicing; lower ops/FX/nostro frictions  • 𝗕𝗮𝗹𝗮𝗻𝗰𝗲-𝘀𝗵𝗲𝗲𝘁 𝗮𝗴𝗶𝗹𝗶𝘁𝘆: collateral mobility, intraday liquidity, real-time treasury  • 𝗠𝗮𝗿𝗸𝗲𝘁 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝘀𝗵𝗶𝗳𝘁: interoperability across venues, wallets, and chains  • 𝗧𝗮𝗹𝗲𝗻𝘁 & 𝘁𝗲𝗰𝗵 𝗺𝗮𝘁𝘂𝗿𝗶𝘁𝘆: enterprise wallets, controls, auditability ▶️“𝗔𝗹𝗺𝗼𝘀𝘁 𝗲𝘃𝗲𝗿𝘆𝗼𝗻𝗲 𝗵𝗮𝘀 𝗮 𝗽𝗹𝗮𝗻” — 𝗻𝗼𝘁𝗮𝗯𝗹𝗲 𝗵𝗼𝗹𝗱𝗼𝘂𝘁𝘀  • Vanguard: withholds access to spot-bitcoin ETFs  • Capital One: no product-level on-chain roadmap disclosed  • Truist: Web3 venture posts, but no public product roadmap  • Citizens / KeyBank / many regionals: sporadic pilots/POCs at most ▶️"𝗠𝗮𝗸𝗲 𝗺𝗼𝘃𝗲𝘀 𝗼𝗿 𝗴𝗲𝘁 𝘁𝗮𝗸𝗲𝗻 𝗼𝘃𝗲𝗿" Finance is going real-time and interoperable on-chain. The Wall Street landscape is being rewired, and incumbents that hesitate will see flows, deposits, and influence leak to faster peers and digital natives. The question isn’t whether—it’s how to build faster. Next post: 𝗣𝗮𝗿𝘁 𝟯 – 𝗕𝘆 𝗡𝗮𝘁𝗶𝘃𝗲𝘀: Digital-native finance companies and how they’re reshaping the rails. Many thanks to Chiara Munaretto and the team at Stablecoin Insider for inputs. My team at Global Venturing Labs (Digital Finance Institute) is turning this into a more comprehensive analysis to demystify TradFi’s on-chain transition—stay tuned. #DigitalFinance #Tokenization #ProgrammablePayments #Custody #Stablecoins #WallStreet #GlobalVenturingLabs #GVL #DigitalFinanceInstitute