Banking rails are moving past the 'stablecoin winner' narrative: Sygnum
Key takeaways
- Also in the race to issue a stablecoin is Qivalis, a consortium of 37 of the European Union’s largest banks, which aims to launch a digital euro before the end of this year.
- The big push from banks directly challenges what European politicians have been saying about who should control the future of digital money.
- While Sygnum’s multi-instrument approach actually supports Lagarde’s thesis that stablecoins are not a silver bullet, it does challenge her conclusion on how to fix the issue.
Rather than waiting for a single winner to emerge, large asset managers and corporate treasuries are demanding a multi-instrument setup in which stablecoins, tokenized bank deposits and tokenized money market funds all run on the same infrastructure.
“The demand from institutional clients is consistent: they are not waiting for any single instrument to prevail,” Thomas Eichenberger, chief strategy officer and deputy group CEO at Swiss-based digital asset bank Sygnum, told CoinDesk on Thursday in an email.
“They are asking how tokenized deposits, regulated stablecoins, and tokenized money market funds can be combined and made interoperable, so a treasury function can move between them — permissioned settlement, 24/7 cross-border flows, yield with on-demand liquidity — under one regulatory framework they already trust,” he added.