Standard Chartered announced it would offer institutional clients direct access to minting and redeeming Circle Internet's USDC this week, becoming the first global systemically important bank to provide integrated access of this kind with Circle. Days earlier, BNY Mellon — the world's largest custody bank managing $59 trillion in assets — expanded its own USDC infrastructure to let institutional clients custody, mint, and redeem the token using BNY's existing systems. Both banks are classified as global systemically important institutions by the Basel Committee. The moves reflect a broader industry shift: banks are no longer debating whether stablecoins belong in finance but are instead determining how to integrate them into payment, settlement, and treasury operations. This operational pivot comes as Chainalysis projects stablecoin settlement volumes could reach a quadrillion dollars annually by 2030.
Standard Chartered Offers Institutional USDC Minting and Redemption
Standard Chartered's partnership with Circle gives institutional clients a direct on-ramp and off-ramp to USDC without needing to rely on third-party intermediaries. It marks the first time a global systemically important bank has offered this level of integrated USDC access in partnership with Circle. The bank's classification as a global systemically important institution by the Bank for International Settlements' Basel Committee gives the move significant institutional weight.
BNY Mellon Expands USDC Custody and Settlement Services
BNY Mellon expanded its USDC infrastructure to let institutional clients custody, mint, and redeem the token using BNY's existing systems rather than building their own. The bank manages $59 trillion in assets under management. BNY Mellon chose to plug into an existing, liquid network rather than issuing its own stablecoin. The expansion occurred days before Standard Chartered's announcement. Both banks are recognized as global systemically important banks by the Bank for International Settlements' Basel Committee.
Industry Voices Highlight Network and Liquidity Importance
Andrew MacKenzie, founder and CEO of Scotland-based stablecoin issuer Agant, said banks are no longer asking whether they will use stablecoins but are deciding how they will use them. Adrian Cachinero Vasiljevic, co-founder and partner at Steakhouse Financial, which advises institutions on decentralized finance, stated that the network is what creates the value and the stablecoin itself becomes almost secondary. Cachinero Vasiljevic added that anybody can issue a stablecoin but if nobody uses the stablecoin, the stablecoin is worthless, and the value of the stablecoin is the network.
Circle CEO Jeremy Allaire responded this week to the introduction of OpenUSD, a rival stablecoin backed by Coinbase, Stripe, and BlackRock. Allaire's defense of USDC leaned heavily on nearly a decade of accumulated liquidity, banking relationships, and regulatory approvals. Chainalysis projects stablecoin settlement volumes could reach a quadrillion dollars annually by 2030.
Qivalis Consortium Leads Euro On-Chain Stablecoin Development Under MiCA
Qivalis, leading a consortium of 37 European financial institutions, is developing the Euro On-Chain (EUOC) stablecoin as a shared infrastructure play rather than a competitive product. Qivalis CEO Jan-Oliver Sell stated that if Europe does not have a euro on the blockchain, banks will use the dollar because it is there, it is available, and it has a lot of liquidity. Sell added that the more banks in the consortium, the better, as the network has stronger network effects.
The consortium model is designed to avoid fragmenting the market with dozens of competing euro tokens from individual banks. Europe's Markets in Crypto-Assets (MiCA) framework already provides the oversight that many dollar-backed stablecoins spent years negotiating. Societe Generale's EUR CoinVertible (EURCV) and Credit Agricole's EURXT represent competing approaches from major French lenders. Dollar-pegged tokens currently account for more than 99% of total stablecoin market capitalization.
Infrastructure Competition Links Stablecoins and Traditional Finance
MacKenzie of Agant noted that banks have moved beyond digital asset strategy into building the plumbing that connects stablecoins to payments, treasury operations, and settlement systems. Businesses overwhelmingly prefer to settle obligations in their home currencies rather than routing value through dollars and back. Cachinero Vasiljevic stated that the value of the stablecoin is the network, and if nobody uses the stablecoin, the stablecoin is worthless.
FAQ
What services has Standard Chartered introduced for institutional clients regarding USDC?
Standard Chartered now offers institutional clients direct access to minting and redeeming USDC in partnership with Circle Internet, making it the first global systemically important bank to offer this integrated capability.
Why are European banks developing euro-denominated stablecoins?
European banks are developing euro-denominated stablecoins to establish a regulated euro alternative under the MiCA framework and prevent settlement activity from defaulting to dollar-backed tokens, which currently represent more than 99% of the total stablecoin market cap. Qivalis leads a consortium of 37 European financial institutions developing the Euro On-Chain (EUOC) stablecoin.
What determines the value and success of a stablecoin according to industry experts?
According to Adrian Cachinero Vasiljevic, co-founder and partner at Steakhouse Financial, the value of a stablecoin is determined by its network — meaning the breadth of adoption and actual usage by banks and customers, not the token itself. Cachinero Vasiljevic stated that anybody can issue a stablecoin, but if nobody uses the stablecoin, the stablecoin is worthless.
