2025 Regulatory Summit

DRAFT - FOR DISCUSSION PURPOSES ONLY

USE CASES

Stablecoin infrastructure is emerging to increase retail and business adoption

Market dynamics

Change in expectations and behaviors  Impact on deposits - Retail customers may shift funds from traditional deposits into stablecoins, impacting bank deposit levels and core expectations. increasingly expect stablecoin payment options, prompting banks to adapt their offerings.  The competitive landscape is evolving as non-bank entities become stablecoin issuers, reshaping partnership dynamics. Infrastructure and capabilities uplift  Banks will need enhanced AML capabilities to monitor and manage stablecoin transactions effectively.  Engaging with public blockchain networks will require banks to understand their clients’ clients and invest in upskilling staff.  Corporate clients may

Enable rapid, cost-effective cross border B2B and B2C payments, reducing banking delays and enhancing transaction speed, global CROSS-BORDER PAYMENTS AND GLOBAL REMITTANCE

TREASURY MANAGEMENT

MEANS TO ACCESS AND HOLD U.S. DOLLARS

DECENTRALIZED FINANCE (DEFI)

Achieve stability, quick transfers, and cost savings, ensuring efficient cash management and flexibility and facilitating global money movement

Enable banks to disperse a stable digital currency for transactions, accessing innovative financial services and additional product offerings

A blockchain-based alternative to U.S. dollars, could provide enhanced yield bearing capabilities compared to traditional bank deposits. Will support on-chain payments, instant settlement, and can potentially be used for loans and yield strategies

merchant integration and international payments.

Global payment networks are integrating stablecoins to streamline cross-border and retail payments Traditional banks are piloting stablecoin issuance, either independently or via stablecoin-as-a-service models Fintechs are launching digital asset platforms and stablecoins to enable new payment and settlement options, sometimes bypassing legacy banking rails Non-bank entities are seeking regulatory approval to manage stablecoin reserves and provide custody services, reducing reliance on traditional banks Industry consortiums are forming to develop stablecoin solutions and promote interoperability across financial institutions

Financial institutions are partnering with digital asset platforms to offer clients access to stablecoin transactions and crypto funding options Retailers are exploring stablecoin launches, typically in partnership with regulated financial service providers Stablecoins are being introduced in multiple currencies, including dollar and euro-backed options, to support both domestic and international payments Financial institutions are expanding roles in the stablecoin ecosystem, such as serving as custodians for reserve assets and facilitating on-chain payments.

Industry Adoption

Key Challenges for Engaging with Stablecoins

Stablecoin depegging

Operational & market risks

Jurisdictional regulatory arbitrage

Cybersecurity & data protection

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DRAFT - FOR DISCUSSION PURPOSES ONLY

Options businesses are considering regarding how to play in PSCs STABLECOIN ECOSYSTEM

How to engage?

Pursue tokenized deposits

Become an issuer

Facilitate stablecoin market activity Support the stablecoin ecosystem by enabling payments, banking, or custody services—without directly issuing coins.

Wait and see Remain on the side lines and monitor market activity and customer interest

Take an active role in the stablecoin ecosystem by issuing its own, consortium-backed or white label stablecoin.

Digitize traditional deposits using blockchain, either independently or with partners, to unlock new efficiencies and capabilities.

Continue to assess customer interest

Launch a stablecoin—maximum control, highest compliance and operational burden. Become direct issuer

Enable seamless stablecoin payments via trusted providers. Send/receive payments

Build and manage your own tokenized deposit platform—full autonomy, full risk. Launch a platform

Transaction bank

Offer on ramp/offramp (mint/burn) capabilities for transforming fiat to stablecoins and vice versa. Safeguard PSCs on behalf of clients and users. Custodian of PSCs Hold and manage reserve assets that back PSCs. Custodian Reserve Assets Enable trading and liquidity sourcing services for PSCs. Capital Markets activity for PSCs Provide technical capabilities to support PSC ecosystem ("Stablecoins as a Service"). Infrastructure offering

Consortium participation Issue stablecoins with industry peers— share risk and expertise, balancing speed and autonomy for joint success.

Collaborate with partners to issue tokenized deposits—shared costs, but slower decisions. As part of a group

Use third-party platforms to issue stablecoins—fast market entry, less customization. Issuer as a service

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