Stablecoins are powering, not disintermediating banks

Stablecoins are powering, not disintermediating banks

Stablecoins were supposed to disintermediate banks, but startups are increasingly raising capital and seeking charters to become the regulated clearing layer beneath them.

Why it matters: The real prize is in handling the deposits, compliance and cross-border clearing behind digital dollars.

Driving the news: Augustus, formerly Ivy, raised $180 million at a $1 billion valuation earlier this week.

  • It has conditional OCC approval to form a full-service national bank for correspondent banking and programmable settlement, with plans to offer deposits, lending, payments, tokenized deposits and stablecoin services.

    • State of play: Erebor received FDIC approval for its deposit-insurance application for a broader crypto-focused commercial bank.

  • Meanwhile, Stripe-owned Bridge has conditional approval from the OCC to operate as a national trust bank focused on stablecoin services.

    • The bottom line: Stablecoins may be new rails, but clearing, compliance and dollar access remain banking businesses.