Stablecoins and Regulation Take Center Stage in Digital Asset Strategy Shift
As stablecoins gain traction in institutional finance, executives call for harmonised regulation, modular product development, and deeper partnerships to support growth
Stablecoins have emerged as the gateway to mass adoption of digital assets, but infrastructure leaders warn that the road ahead is mired in regulatory confusion and operational fragmentation. As more financial institutions explore tokenised assets and blockchain-based finance, panellists at a recent summit emphasised that stablecoins are only one piece of a more complex puzzle.
"Banks make a lot of money by facilitating cross-border flows and doing FX," said Sabih Behzad, Head of Digital Assets at Deutsche Bank. "If that business doesn’t exist, that fundamentally changes how banks operate. So I think there should always be a healthy fear of innovation out there."
Behzad explained that while stablecoins and other innovations in the crypto space were initially seen as threats, they are now meaningfully entering traditional finance.
"One example is the tokenised money market funds that major issuers have created. All of a sudden, you’ve now got the ability not just to use those in crypto transactions, but actually to use them for collateral management."
"The opportunity in a bank is massive because banks already have huge incumbent businesses. They have many products and services that probably have some level of applicability of this technology," he said. "But banks tend to move at an oil tanker speed."
Andrej Majcen, CEO and Co-Founder of Bitcoin Suisse AG, echoed that tension between innovation and inertia. "We supported the first bank in Switzerland and the first one in Liechtenstein, actually globally, the first banks that started with a crypto offering in 2016. If I look back at the last 10 years, not really much has changed."
"You start with an idea, the choice to go crypto, and of course, you have client demand on one side. On the other side, you need to build up the capabilities in-house. The complexity is high—custody, staking, brokerage, blockchain monitoring, forensics, reporting, taxation."
"It’s always quite a big uphill struggle for many," said Nadeem Ladki, Global Head of Business at Bitpanda Technology Solutions (BTS). "Understanding the complexity of custody, the infrastructure, the compliance around liquidity, brokerage—it’s a busy space. We try to simplify it for our clients."
From Crypto to Compliant
Speaking at the FT Live Digital Assets Summit on May 6, 2025, in London, panellists reflected on the transition from crypto novelty to regulated asset class. As regulation catches up, many firms are positioning themselves as long-term infrastructure providers.
"We started Bitcoin Suisse AG in 2013," said Majcen. "Back then, it was all anonymous platforms. No one knew who was behind them. We said, let’s do it differently—be a shareholder company in Switzerland, have a physical address, and have a phone number. Be here for clients."
"We became self-regulated in 2014. That was years before anyone else in the industry even thought this might be relevant. Later, the regulator in Switzerland came up with guidance, like token classification—payment tokens, utility tokens, and security tokens."
Nilixa Devlukia, EMEA Policy Advisor at the Global Blockchain Business Council (GBBC), said: "This is a global ecosystem. You can be in the US, Canada, or Nigeria and access those products from anywhere else in the world. That creates challenges not only for industry but also for regulators."
"If I buy a stablecoin in one country, I might have different protections than if I access that same stablecoin in a different country. That fragmentation leads to uncertainty for investors and challenges for smaller businesses."
Ladki highlighted the MiCA (Markets in Crypto-Assets Regulation) framework as a milestone. "They’re rolling it out now as of 2025. That’s helping cement agreement across what was once a very fragmented approach to Europe."
He praised the UAE for taking a collaborative approach. "They created a dedicated regulator just for virtual assets—VARA (Virtual Assets Regulatory Authority). They invited participants to sit down and frame a framework."
Building Modular, Evergreen Solutions
As the digital asset space matures, firms are moving beyond speculation to build evergreen and interoperable infrastructure. Custody has emerged as a natural starting point.
"We already do custody," said Behzad. "Offering digital asset custody is not a big leap. It helps build control frameworks like transaction monitoring and integrating with legacy systems."
Ladki said: "Around Europe, under 20% of financial institutions still provide any kind of digital asset service. But the demand is heavily outsized. People want access through their bank."
"Technology is the easy part. What’s difficult is staff, control, processes, and expertise. That’s where the platform becomes a launchpad while you’re figuring out how to bring in-house capabilities."
Majcen added, "At the beginning, there was only retail. Over time, the cost to serve became too high. Since we follow banking standards, it’s hard to compete with platforms where you could open an account with just an email address."
Behind every successful platform is a team of experts navigating evolving risks.
"We gave shares to employees early on. We tried to make them entrepreneurs, like a small family," said Majcen. "But when you do hyper scaling, the family becomes bigger. You need to make tough decisions."
"We have around 700 employees," said Ladki. "What really attracts people is being a leader. People want to work for those who are doing the best."
"It’s not straightforward for a bank," said Behzad. "Technologists have a lot of opportunities elsewhere, and banks move slowly. But the opportunity to redesign financial services is compelling."
Devlukia said, "Particularly in fintech, this is a people business. Bringing businesses to market means playing in a regulated space. That brings responsibility, but also opportunity."
Toward a Real-Time Financial System
While stablecoins and custody offer tangible use cases today, panellists expressed optimism about blockchain’s potential to modernise financial infrastructure.
"We in the year 2025 still talk about bank opening hours from nine to five, and bank holidays and weekends," said Majcen. "Blockchains are always on. If you can send a physical letter faster than a bank settlement, we have a big growth trajectory."
"It’s unlikely that banks get completely displaced," said Behzad. "We’re going to see more and more partnerships with fintechs to bring their speed and technological power to large institutions."
"We don’t want to become a bank," said Ladki. "Just like it’s not for banks to become fintechs. But we want to be part of that journey."
"Banks are adopting the technology," said Devlukia. "There’s a spectrum—from Bitcoin to central bank digital currencies. But all of these different digital assets carry different consumer protections."
"One thing is consumer protection. The other one is the pricing," said Majcen. "The fees we pay to financial intermediaries are still pretty high. The cost savings will be on the banking side, not necessarily to end users—unless it’s handed over."
As digital assets move into the mainstream, the panellists agreed that real-world utility, compliance, and collaboration will be the keys to sustainable growth. Stablecoins may lead the way, but the future of finance is broader, more modular, and built to last.