In a June report, Coinbase highlighted that the ability to use stablecoins is among the top five potential benefits that attract Fortune 500 CEOs. In particular, seven out of 10 Fortune 500 CEOs are considering using stablecoins, primarily for payments. The reason for this is the instant transaction processing time and lower fees. In addition, according to Coinbase, the daily volume of transfers in stablecoins reached a record high in the first quarter of 2024. Therefore, it is not surprising that financial giant State Street Corporation is considering launching a stablecoin and a deposit token to use blockchain for payment settlements.
State Street is Exploring the Possibility of Creating Stablecoins
According to Bloomberg, citing an anonymous source, the Boston-based asset management company wants to use blockchain to improve the speed and efficiency of cross-border payments.
State Street is exploring various options to improve its blockchain-based payment services. One of the main strategies includes the possibility of launching a stablecoin, as well as a deposit token that will record customer deposits. A deposit token is similar to a regular deposit that is kept in a licensed depository institution, such as a commercial bank but is recorded on the blockchain.
Read Also: Justin Sun Asks China to Step Up on Cryptocurrencies Policies After Trump’s Stance on Bitcoin
In addition, the company is planning to join virtual asset consortia and is exploring the possibility of making payments through an investment in Fnality, a blockchain payment company.
Although State Street representatives did not comment on the news, the company’s further involvement in the blockchain sphere indicates its intention to improve the management of its digital assets.
According to the company, this year they are focusing on three key areas: increasing sales in all business lines, strategic changes in the investment business, and careful control over productivity and cost management.
Stablecoins play an important role in the crypto economy by providing liquidity on cryptocurrency exchanges and facilitating the exchange of assets. For a digital asset to be bought or sold quickly, exchanges need to be liquid. Cryptocurrency companies also increase liquidity by issuing native tokens. At the same time, they improve the user experience, provide additional features, and lower fees for their users.
In recent years, many cryptocurrency exchanges have launched their native tokens that provide certain privileges for their holders. For example, MEXC has its own MX token, which gives a 20% discount on commissions and access to various activities (promotions, voting, M-DAY, luncheon). OKX has also introduced its own OKB coin, which offers up to 40% discounts on trading commissions, passive income through OKX Earn, and a wide range of options for using the ecosystem.
The WhiteBIT cryptocurrency exchange also has its token. WBT holders receive several benefits in the exchange’s ecosystem, including an increased share of referral fees of up to 50%, free ERC20 withdrawals, AML checks, discounts on trading fees, etc.
Bitcoin Surpasses Visa And Mastercard In Daily Transaction Volume
According to the latest Glassnode data, Bitcoin has surpassed Visa and Mastercard in terms of daily transaction volume. At the same time, the volume of unfiltered on-chain transactions of the leading cryptocurrency is $46.4 billion. For comparison, the filtered volume of economic transfers is $6.5 billion.
The recent increase in transaction volume follows the rapid recovery of the Bitcoin price. With a current market capitalization of $1.3 trillion, the leading cryptocurrency is also worth more than Visa and Mastercard. The two largest global credit card giants are valued at $556 billion and $418 billion, respectively.
Read Also: Ripple CEO Criticizes SEC’s Inconsistent Crypto Regulations
Cryptocurrencies and crypto payments have become one of the hottest topics in the modern financial sector. From the moment Bitcoin was launched in 2009 to the present day when thousands of digital assets flood the market, decentralized finance technologies have attracted the attention of not only enthusiasts but also large corporations, governments, and ordinary consumers. In recent years, the number of companies and shops accepting cryptocurrency payments has grown significantly.
Cryptocurrency transactions often have lower fees than traditional bank transfers and payment systems. This is especially important for international payments, as banking services can be expensive and time-consuming. Crypto payments offer an alternative to traditional banking services, providing greater convenience, security, and speed. Among the well-known companies that accept cryptocurrencies are Microsoft, Tesla, Amazon, PayPal, and many others. In particular, there are currently a large number of payment solutions that simplify the process of paying with cryptocurrencies, including CryptoPay, BitPay, Whitepay, etc.
However, some European countries demonstrate that cryptocurrency payments are not limited to large companies but even go beyond the usual places. For example, Switzerland was one of the first countries to introduce the possibility of paying taxes in Bitcoin. Also, Ukraine recently hosted a large-scale music festival Atlas UNITED24, where users had the opportunity to take part in exclusive promotions from the event partner WhiteBIT, pay at the bar, and make donations directly in cryptocurrency.
Summary
The development of cryptocurrencies and blockchain technologies continues to change the financial landscape. The introduction of stablecoins by major companies such as State Street Corporation demonstrates their willingness to use new technologies to improve the efficiency of payment systems. The growing number of Bitcoin transactions shows that cryptocurrencies can compete with traditional payment systems by offering fast, secure, and cost-effective alternatives.
Read Also: Senator Cynthia Lummis Advocates for U.S. Strategic Bitcoin Reserve to Tackle National Debt
