The banking industry is at a pivotal moment. Stablecoins, once viewed as speculative, have now become a legitimate part of the financial infrastructure, poised to redefine how banks operate. With providers like FIS, Fiserv and Jack Henry embedding stablecoin capabilities directly into core banking platforms, stablecoin adoption is no longer a futuristic concept—it’s a near-term strategic necessity.
The Case for Stablecoin Adoption
Stablecoins, unlike their volatile cryptocurrency counterparts, are pegged to fiat currencies (usually the U.S. dollar) and built for predictability and performance. Their core value proposition lies in enabling 24/7 settlement, near-instant cross-border transactions, lower transaction costs, and programmable financial flows. This isn’t just a tech upgrade; it’s a business model evolution.
For banks, especially community banks, the potential benefits are clear:
Faster settlement and improved liquidity for treasuries.
New non-interest income through merchant settlement and transaction fees.
Enhanced competitiveness with fintechs and large institutions already leveraging digital asset rails.
By 2026, industry experts suggest that stablecoin capabilities will be table stakes for banks.
Those not preparing now risk losing both relevance and revenue.
Not Just Hype: Major Cores Are Building the Infrastructure
The three largest core banking providers—Fiserv, FIS and Jack Henry—have already begun embedding stablecoin functionality into their platforms:
- Fiserv is going all-in, launching its own bank-grade stablecoin (FIUSD) in partnership with Circle and Paxos. FIUSD is designed to interoperate with Mastercard and PayPal networks, creating mainstream merchant acceptance pathways.
- FIS is integrating USDC, a widely used stablecoin from Circle, into its Money Movement Hub, treating it as a native payment rail alongside ACH and RTP.
- Jack Henry is enabling stablecoin, Bitcoin and broader crypto access through partnerships with Metallicus and NYDIG, making digital assets accessible even to smaller institutions via plug-and-play APIs.
Each approach differs, but the message is the same:
Banks now have a secure, compliant on-ramp to the digital asset economy, baked into their existing cores.
What Bank Boards Should Do Now
A key reason to act now is the emerging regulatory clarity. Congress has provided a legal foundation for payment stablecoins, while regulators are setting supervisory expectations. For bank directors and executives, this is a moment that demands governance-level engagement. The shift to stablecoin infrastructure is not just about IT; it’s about protecting customer relationships, unlocking new revenue streams and ensuring compliance with a new financial era.
Here’s a simple, actionable framework for boards:
Educate (0–60 Days)
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- Ensure board members and key executives understand the basics of stablecoins, their use cases and risks.
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- Assess how your institution’s current core provider enables stablecoin and crypto functionality.
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Engage (60–90 Days)
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- Direct the management team to initiate discussions with core providers about activation timelines, technical requirements and early use cases (e.g., merchant settlement or cross-border remittance).
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- Evaluate partnerships with regulated custodians and fintechs for added flexibility.
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Execute (90–120 Days)
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- Launch a pilot program with clear KPIs, such as faster settlement for specific merchant types or offering crypto rewards accounts.
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- Use early results to inform roadmap planning and investment strategies.
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Strategic Advantages for Community Banks
Community banks stand to gain from early stablecoin integration in the following ways:
- Client retention: Younger customers expect digital asset capabilities. Stablecoin-enabled services help meet those expectations while keeping accounts local.
- Revenue diversification: Payments, custody and rewards can all generate new, non-interest income streams.
- First-mover positioning: With major banks and fintechs already offering Bitcoin and stablecoin services, community institutions that act now can maintain relevance and trust in their markets.
A Clear Road Ahead
The emergence of stablecoins as programmable, bank-grade money is not a passing trend—it’s a structural shift. While headlines may focus on Bitcoin volatility or the hype around crypto markets, the real story is more foundational: how digital assets are quietly becoming the plumbing of the modern banking system.
Boards that lean in now—educating themselves, engaging with core partners and executing pilot programs—will ensure their institutions don’t just survive the transition, but lead it.
About the Authors
Meredith Rousseau is a principal in the Banking and Financial Services practice. A former banking executive, Meredith brings a blend of operational expertise and tactical acumen to help clients propel their digital transformation in a practical, sound manner.
To learn more, connect with Meredith at mrousseau@solomonedwards.com.
John Zazzera, an advisor in our Banking and Financial Services practice, brings a rare blend of leadership across global payments, bank operations, technology, product management and capital markets. With more than 30 years’ experience in the financial services industry, including with core banking platforms, John is passionate about community banking where customer centricity, technology and disciplined execution intersect.
To learn more, connect with John at jzazzera@solomonedwards.com.
