Wall Street Banks Embrace Tokenisation as Growth Opportunity Amid Stablecoin Headwinds
Major US banks view tokenisation as a chance to expand trading, payments and advisory services, even as new research suggests higher deposit rates could dampen stablecoin expansion.
Tokenisation is increasingly seen by the largest US banks not as a disruptive threat but as a strategic growth area. According to CoinDesk, Goldman Sachs, Wells Fargo and Morgan Stanley are actively exploring new trading opportunities, faster payment rails and expanded roles for financial advisers as tokenised assets gain traction on Wall Street.
The development reflects a broader shift in how traditional finance is approaching blockchain-based innovation. Rather than resisting change, these institutions are positioning themselves to capture value from the tokenisation of real-world assets. This includes potential efficiencies in settlement times and the creation of new advisory services for clients interested in tokenised products.
At the same time, research highlighted by CoinDesk suggests that stablecoins – a key component of the emerging tokenised economy – may face growth constraints from traditional banking practices. A working paper from the Bank for International Settlements found that even a modest 1 basis point increase in US bank deposit rates is associated with slower stablecoin expansion. The paper indicated that such a rate rise could reduce ten-week stablecoin growth from 15 per cent to 12 per cent.
This dynamic illustrates the competitive tension between decentralised financial instruments and conventional banking products. If banks choose to offer savers higher yields, they may successfully retain deposits that might otherwise flow into stablecoins.
Separately, Polygon is seeking to strengthen its position in the payments sector through the acquisition of Coinme. CoinDesk reports that Polygon CEO Marc Boiron views the move as a way for the company to build direct customer relationships and capture revenue currently taken by intermediaries such as Visa and Stripe. By integrating Coinme’s capabilities, Polygon aims to establish a stronger foothold in a market long dominated by established payment giants.
The developments come against a busy backdrop in the wider crypto sector. As Cointelegraph’s daily briefing noted, ongoing trends in Bitcoin pricing, blockchain technology, decentralised finance, Web3 applications and regulatory matters continue to shape market sentiment and institutional interest.
Further insight into traditional finance’s evolving relationship with digital assets was shared at the recent BFFS26 event in Denver, covered by Bitcoin Magazine. Discussions featured perspectives on Bitcoin custody and credit solutions, as well as lessons from traditional banking. The gathering brought together certified public accountants, wealth advisers and lenders, with additional sessions addressing public-company Bitcoin treasury strategies and the regulatory outlook from Wyoming officials.
Taken together, these developments point to a maturing relationship between conventional financial institutions and the crypto ecosystem. While banks are proactively exploring tokenisation as a business opportunity, external factors such as interest rate policy may influence the pace at which certain crypto instruments can grow. Polygon’s expansion into payments further demonstrates how blockchain-native companies are seeking to compete directly with legacy payment providers.
The coming months are likely to reveal how effectively traditional banks can integrate tokenisation into their existing operations while managing competitive pressures from both stablecoins and new entrants like Polygon. The interplay between deposit rates, regulatory clarity and technological adoption will remain central to how these opportunities unfold across Wall Street and the broader crypto industry.
Sources
- Goldman, Wells Fargo, Morgan Stanley see tokenization as a growth play, not a threat — CoinDesk
- Polygon sees Coinme acquisition as entry to payments sector dominated by Visa, Stripe — CoinDesk
- Here’s what happened in crypto today — Cointelegraph
- Banks could slow stablecoin growth by paying savers more, BIS paper finds — CoinDesk
- BFFS26 Denver: Joseph Kelly on Bitcoin Custody and Credit; Alan Lane on Banking Lessons — Bitcoin Magazine