Key Takeaways
- Fintech expert Leda Glyptis shared the challenges traditional banking faces due to the growth of stablecoins.
- Real-time stablecoins are exposing weaknesses in banking infrastructure.
- Europe risks falling behind as dollar-backed stablecoins grow.
The rapid adoption of US dollar-backed stablecoins is creating new pressures on liquidity management and the future role of commercial banks, fintech expert and former banker Leda Glyptis said on Tuesday.
She also warned that Europe’s cautious approach to digital assets risks leaving the region behind as US dollar-backed stablecoins gain global adoption.
Traditional Banks Embrace Stablecoins — And Expose Challenges
Speaking at the PaymentsUnleashed EMEA conference on Monday, Glyptis noted that stablecoins had moved firmly beyond their experimental phase and were now being widely deployed by traditional banks.
“We’re seeing a lot of implementations in clearing and settlements,” Glyptis said.
Adding: “Most traditional banks, where I spent most of my life, are actually using stablecoins to do pretty traditional banking things.”
She said the technology had become “a treasurer’s absolute dream,” enabling banks to manage liquidity and foreign-exchange exposure in real time.
However, Glyptis warned that widespread adoption was exposing weaknesses in the banking system’s existing infrastructure.
She noted how multiple treasurers adopting at the same time were causing “some systemic challenges.”
Glyptis said the traditional system for funding correspondent banking accounts was not designed for real-time settlement, creating new strains as adoption accelerates.
“The way we traditionally fund Nostro Vostro doesn’t really work with the real-time world,” Glyptis said.
She added that stablecoins were creating opportunities for both consumers and banks while also introducing broader systemic risks.
“It’s actually giving us a lot of possibility at the individual level versus a consumer and as a bank, but creating a lot of tensions at the systemic level,” she said.
While she noted that “innovation is great,” she said the banking community was concerned about “destroying banking as we know it.”
Instead, some banks were advocating for tokenized commercial bank money, describing it as “something we understand, something we can control.”
Europe Risks Falling Behind
Glyptis contrasted the US’s increasingly assertive approach to stablecoins with Europe’s more cautious stance.
She argued the region lacked a clear response as dollar-backed tokens continue to gain traction.
“The European Central Bank has made it very clear that they would like us to fall in love with a digital euro,” she said.
Adding: “They don’t like the stablecoin story.”
However, she said the European Central Bank‘s preferred alternative would likely arrive too late to curb adoption.
“We’re not going to have it until 2029 at the earliest,” she said, by which time we will probably be closing the stable door after the proverbial horse has bolted.”
She said this was because the European market was increasingly adopting dollar-denominated stablecoins at a rapid pace.
Dollarization and Sovereignty Concerns
Beyond payments, Glyptis said the spread of dollar-backed stablecoins was also becoming a geopolitical issue.
“It really does matter, because actually, at a government level, controlling your money supply is extremely important,” she said.
She cited research from major banks suggesting some countries could experience banking-sector disruption if deposits increasingly migrated into stablecoins.
“I don’t know of any stories where bank closures ended well for the poorest in society,” Glyptis said.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
