Stablecoins Threaten Banks: Here’s How

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Introduction

Welcome to the Tokenized newsletter, brought to you by the creators of the Tokenized Podcast; Simon Taylor of Fintech Brainfood and Pet Berisha of Sporting Crypto, written by Jeremy Batchelder.

We are the newsletter for institutions that need help preparing for a Tokenized future.

We run through the headlines every week, what it means for you and a market readout. Always with an institutional, business-focused perspective. 

Join us every week as we meet your Tokenization needs.

Stories You Can’t Miss 📰

💼 Inversion Capital: Building "Berkshire Hathaway On-Chain” 

Santi Santos, CEO of Inversion Capital, joined Tokenized to discuss his firm's unique thesis and approach to bringing crypto adoption to millions of users through strategic acquisitions.

Key Points:

• Inversion Capital is taking a private equity approach, acquiring traditional businesses and transforming them with crypto elements

• The firm is focusing particularly on telco companies in developing markets like Latin America, which they can acquire for approximately 5x EBITDA

• Inversion is building its own L1 network on Avalanche to facilitate vertical integration and accrue value from transaction fees

• The company aims to be a "permanent capital vehicle" similar to Berkshire Hathaway, rather than a traditional private equity fund with 5-year exit horizons

The Tokenized Take:

• Telcos as crypto on-ramps: Telco companies offer unique advantages as crypto adoption vehicles - they "live with customers 24/7," already have KYC data on users through SIM registration, and possess significant customer data that can be leveraged for financial services

• Dollar demand driving adoption: In developing markets like Latin America, where most people cannot hold dollars in bank accounts but want to, stablecoins offer a compelling use case with significant adoption potential

• Fintech transformation play: Inversion views its strategy not as a mobile telco play but as a fintech play with an efficient customer acquisition strategy, recognizing that "most telcos in developing countries will become banks"

• Strategic treasury management: The creation of a native L1 chain provides a mechanism for funding acquisitions, similar to how Ripple has begun strategic M&A and how Tether is investing in agriculture and sports assets

• User retention focus: Inversion aims to solve the poor unit economics of crypto by addressing retention - activating users through practical utility rather than speculation, which has historically led to high churn

As Santi explained: "This is not a mobile telco play, it's a fintech play with a really interesting customer acquisition strategy, which is buying an asset that is very unproductive... most telcos in developing countries will become banks, and you do that when money's truly digital with stablecoins."

🚀 Meta is Quietly Exploring Stablecoin Integration for Creator Payments

Meta is cautiously re-entering the cryptocurrency space, exploring stablecoin integration for creator payments across its platforms, according to Fortune. The company has been holding preliminary discussions with several crypto infrastructure providers since early 2025, with a particular focus on leveraging stablecoins for cross-border payouts to creators.

Key Points:

• Meta hired Ginger Baker as VP of Product in January 2025, who specializes in fintech and payments and serves on the board of the Stellar Development Foundation

• According to sources, Instagram could integrate stablecoins to facilitate small creator payouts (around $100) across different markets with lower fees than traditional fiat transfers

• Meta appears to be "stablecoin agnostic" rather than favoring a specific provider like Circle's USDC

• Circle hired Matt Cavin in March specifically to lead "tier-1 strategic partnerships" with Meta and other Big Tech firms

The Tokenized Take:

• Return to crypto with a measured approach: Meta's re-entry into crypto after the Diem failure shows they've learned to start with practical use cases (creator payments) rather than reinventing money itself

• Creator economy as the wedge: By focusing on creator payouts, Meta targets a genuine pain point (cross-border payments) with high engagement rather than speculative use cases

• Regulatory environment shift is key: The Trump administration's more crypto-friendly stance and progress on stablecoin legislation has created the opening Meta needed to explore this space again

• Potential network effects are massive: With billions of users across Instagram, Facebook, and WhatsApp, even modest stablecoin adoption through Meta could dramatically accelerate mainstream usage

💸 Stablecorner ⚖️ → The Rise of Stablecoin Financial Accounts: Stripe's Threat to Traditional Banking

Stripe has launched global stablecoin financial accounts in 101 countries, establishing a significant new option in the cross-border payments landscape. This system offers 24/7 instant dollar transfers globally, programmable treasury operations, and integrated yield optimization—capabilities that address key pain points for corporate treasury teams. Patrick Collison, Stripe's CEO, highlighted the momentum behind this technology, noting that stablecoin adoption is showing growth metrics that "eclipse anything we've seen before at Stripe, including Stripe itself." Initially supporting USDC and Bridge's USDB, the platform will expand to incorporate additional currencies over time.

As Simon mentioned, traditional banks have established robust global networks over decades, with Citi offering services in 94 countries directly (and 180 through correspondent relationships) and HSBC maintaining accounts in 60 countries. These networks represent significant institutional investments and expertise. While some bank leaders may view stablecoins as primarily crypto-related rather than infrastructure-focused, the underlying technology offers compelling features for cross-border finance. Stripe's system leverages modern technology to achieve a reach comparable to major global banks, though with different regulatory considerations.

JP Morgan's Kinexsys represents a forward-thinking approach from a traditional bank, having expanded recently to support GBP alongside USD, though its approach differs from Stripe's more developer-oriented platform. Banks have natural advantages in regulatory compliance, risk management, and balance sheet capacity that could be leveraged in the stablecoin ecosystem. Industry analysts note that financial institutions that integrate programmable money capabilities into their existing services could develop compelling hybrid offerings that combine traditional banking strengths with stablecoin efficiencies.

The legislative landscape continues to evolve, with the proposed GENIUS Act representing one framework for stablecoin regulation. Several major banks are already exploring stablecoin opportunities through various approaches. Data from the Bank for International Settlements indicates that cross-border payments represent a $156 trillion market globally, with businesses spending approximately $120 billion annually on transaction fees. This suggests substantial potential for both traditional financial institutions and new entrants to improve efficiency in this space. Banks that view stablecoins as a complementary technology rather than just a competitive threat have opportunities to enhance their service offerings, particularly for multinational clients with complex treasury needs.

📰 Some More News:

🏦 Tokenization & Finance

• Aave Labs’ Horizon partners Ant Digital to build RWA market on Ethereum (Read more here)

• Deutsche Börse’s 360T unveils 3DX Digital Exchange for crypto (Read more here)

• COIN jumps 8% on news Coinbase will become the first pure-play crypto firm to join S&P 500 index (Read more here)

• Asset Manager VanEck Joins Tokenization Race With U.S. Treasury Fund Token (Read more here)

• FCA-Regulated Digital Asset Derivatives Trading Venue GFO-X Debuts in London (Read more here)

🤑 Funding and M&A

• StrikeX and CMC Markets Enter New Growth Phase with Majority Acquisition (Read more here)

💼 Government & Policy

• Hong Kong arm of China’s largest broker to launch tokenized securities (Read more here)

• GENIUS stablecoin bill fails first Senate vote, despite some progress (Read more here)

• SEC proposes exemption for tokenization, DLT securities (Read more here)

• Bank of England hints at stance on UK stablecoins (Read more here)

Simon’s Market Readout 💬 

Tweet of the Week 🐤 

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