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Crypto exchange Coinbase has assured that stablecoins do not siphon deposits from US banks. The firm argued that most users seek dollar exposure outside the United States, rather than substitutes for domestic checking or savings accounts. Chief Policy Officer Faryar Shirzad reiterated that the notion that “stablecoins will destroy bank lending” is a flawed narrative. He pointed to on-chain payments and cross-border use as the main drivers of growth.
Coinbase’s recent policy note stated that stablecoins operate as digital payment tools and run on public blockchains, a system that coexists alongside traditional banking. Some coverage of the note added that roughly two-thirds of stablecoin transfers happen on DeFi platforms, underscoring activity on open networks rather than within banks. Weekly Federal Reserve data show US commercial bank deposits near $18.5 trillion, providing context for the scale of domestic deposits relative to the stablecoin market.
Global authorities continue to warn about financial stability and compliance risks. The People’s Bank of China’s governor, Pan Gongsheng, cautioned this week that stablecoins raise AML and identification concerns and could add fragility to the system. Europe’s rescue fund chief, Pierre Gramegna, said that stablecoins without strong guarantees may pose system-wide risks. The Financial Stability Board also urged consistent implementation of crypto standards.
In the United States, a federal payment structure for issuers of payment stablecoins was created by the GENIUS Act. The White House included core requirements, such as AML requirements and the treatment of authorized payment stablecoins, as well as staged implementation of legal investigations and clarification on who may issue to US persons. Coinbase praised the law in its policy writing, referring to it as a pro-consumer baseline.
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Established players are moving to use blockchain rails for transfers. Western Union announced plans to launch the US Dollar Payment Token (USDPT) on the Solana blockchain, with issuance facilitated by Anchorage Digital Bank. The company targets the first half of 2026 for the token's availability, framing it as a means to reduce costs and expedite settlement for cross-border payments.
Western Union said customers will access USDPT through partner exchanges, with a broader “Digital Asset Network” to support off-ramps. The firm cited Solana’s throughput and fee profile as key reasons for selecting the chain. The move follows a broader increase in stablecoin transaction volumes and on-chain usage, as reported by industry researchers in 2025.
