- Banco Santander plans euro and dollar stablecoins for Latin America.
- Openbank seeks EU license to launch crypto services for clients.
- Global banks increasingly explore stablecoins amid rising digital asset demand.
Spain’s biggest bank, Banco Santander, is moving deeper into the world of digital finance. Openbank, the digital banking division of the bank, will give retail clients access to cryptocurrency services and launch its own stablecoin. The fact that the MoU is still just being discussed shows how important it is for banks in Europe to take part in cryptocurrencies.
Banco Santander Advances Stablecoin Plan in Digital Strategy Push
According to the Bloomberg report, Banco Santander is moving ahead with its stablecoin in line with its greater digital asset strategy. Meanwhile, Openbank has sought licenses to provide retail crypto services under the European Union’s MiCA regulation. The purpose of the law is to have only one set of rules for crypto-related services in the EU.
This, however, is part of a wider shift happening across the global banking market. A growing number of banks are getting involved with blockchain and cryptocurrencies. There are examples in Europe, such as Barclays, BBVA, and Standard Chartered, who are trying different approaches to working with digital assets. On the other side of the Atlantic, American companies such as JPMorgan, Citigroup, and Morgan Stanley are making their way into the industry.
Secondly, banks are being drawn to stablecoins because their market is on the rise. Stablecoins are a type of digital token made to maintain a fixed value linked to the US dollar or euro. One reason these tokens are gaining interest is that they enable faster and cheaper payments. Moreover, they are especially useful in regions where local currencies have low value. Currently, the global market for stablecoins stands at over $250 billion, and Tether, the largest issuer, earns billions by investing in U.S. Treasury securities.
Banco Santander Eyes Euro, Dollar Stablecoins for Latin America
There are still people who do not agree with this development. Lobbyists and some lawmakers in the United States have been attempting to keep stablecoin legislation from passing. Banks worry these innovations could make both their profits and tied customers fall. Their biggest concern centers on stablecoins that have interest-generating features and could draw customers away from banks.
In contrast, support is growing in other countries. For example, Itaú, the largest bank in Brazil, may launch a stablecoin when the right local rules are established and once U.S. banks enter the market. Japan’s Sumitomo Mitsui Financial Group (SMFG) is also making progress, working with Ava Labs and Fireblocks to build a stablecoin platform. The launch is set for 2026, but trials will begin later this year.
After coming back to Spain, Banco Santander is still considering whether it wants to develop a stablecoin or if it would rather make one widely accessible. Still, the bank plans to offer euro- and dollar-linked tokens to Latin American clients. This move follows rising demand for stable digital money amid ongoing economic challenges.
Ultimately, the stablecoin initiative from Banco Santander demonstrates that traditional banks are venturing into digital assets. Clearing up the regulations is making many banks want to look into crypto services today. As a result of its actions, Santander could see widespread use of stablecoins in both Europe and Latin America. This move also highlights the growing popularity of blockchain in financial services globally.
