Santander Explores Stablecoins and Crypto for Retail Customers
Banco Santander SA, one of Europe’s largest financial institutions, is preparing to enter the retail crypto services market—and possibly issue its own stablecoin. The move, still in early stages, is part of a broader trend among global banks adjusting to new regulatory shifts favoring digital assets.
According to a May 29 Bloomberg report, the bank is evaluating fiat-pegged stablecoins denominated in both US dollars and euros, aligning itself with a growing number of traditional financial giants exploring the stablecoin space.
Big Banks Eye Stablecoins Amid Changing U.S. Policy
Santander joins an expanding list of major banks—including JPMorgan, Bank of America, Citigroup, and Wells Fargo—weighing similar initiatives. The renewed interest comes after recent regulatory softening in the U.S. under President Donald Trump, which appears to be laying the groundwork for bank-issued digital tokens.
Supporters of stablecoins argue these assets can:
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Enhance US dollar dominance in global transactions,
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Improve payment system speed and liquidity,
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Expand access for the unbanked,
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Enable small businesses to tap into global financial markets.
Industry Tensions Rise Over Yield-Bearing Stablecoins
Not everyone in the banking world supports this direction. A growing rift has emerged, especially over yield-bearing stablecoins, which many in the banking lobby and U.S. Senate fear could destabilize traditional lending models.
Senator Kirsten Gillibrand, speaking at the DC Blockchain Summit in March 2025, warned:
“Do you want a stablecoin issuer to be able to issue interest? Probably not, because if they are issuing interest, there is no reason to put your money in a local bank.”
She cautioned that such developments could divert deposits from local banks, threatening the availability of loans for households and small businesses.
Academics and Experts Push Back Against Regulation
Austin Campbell, a finance professor at New York University, explained that yield-bearing stablecoins challenge the low-interest model underpinning retail banking and the fractional reserve system.
In a candid May 21 X post, Campbell criticized proposed regulations designed to restrict stablecoins that offer interest:
“The only people who benefit [from banning yield-bearing stablecoins] are billionaires and bank executives.”
His remarks reflect a growing skepticism that traditional finance is protecting its turf at the expense of broader financial innovation and inclusion.
What’s Next for Santander and the Crypto Market?
If Santander moves forward, it could become a first-mover among European banks offering crypto services directly to retail clients, reinforcing its image as a forward-looking institution.
The potential issuance of euro- and dollar-backed stablecoins could also position Santander as a major player in the ongoing transformation of global payments infrastructure.
With regulators, lawmakers, and banks clashing over how fast and far stablecoins should be allowed to go, the next year promises to reshape not only digital finance, but the very structure of modern banking.
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