Leading US financial institutions are moving beyond pilot projects to fully deploy blockchain technology in core finance functions, leveraging new regulatory frameworks to enhance speed, transparency, and efficiency in digital assets.
More than half of the 25 largest U.S. banks have moved beyond cursory trials and are deploying teams, capital and production-grade projects to rewire core finance functions onto blockchain infrastructure, according to a recent BitGo report. The activity ranges from custody and tokenisation to the issuance and settlement of regulated stablecoins, a shift bankers say responds to client demand for speed, transparency and programmability that legacy systems struggle to deliver.
Industry figures and recent deals suggest the change is practical rather than merely rhetorical. U.S. Bank was chosen to hold custody of reserves backing payment stablecoins issued by Anchorage Digital Bank, a tie-up the bank says aligns with the United States’ GENIUS Act framework enacted in 2025. Custodia Bank and Vantage Bank have already placed dollar deposits onto the Ethereum mainnet with a token called Avit, demonstrating deposits can be issued, transferred and redeemed on permissionless rails while remaining within regulated banking structures, according to American Banker.
Regulatory moves have removed a key barrier that previously restrained large institutions. Congress enacted the GENIUS Act in 2025 to create a legal route for regulated stablecoin issuance, while lawmakers passed the CLARITY Act to define digital commodities and securities more clearly. The effect has been to convert legal uncertainty into an operational challenge for banks: build or cede payment, custody and settlement roles to new entrants.
Market flows are underlining the urgency. Stablecoin transaction volumes have surged into the trillions of dollars per month, and Brookings Institution analysis published in October 2025 shows the ten largest stablecoins by market capitalisation held a combined value of $258.2 billion at that time. The Brookings report warns that the expansion of stablecoins has significant implications for treasury markets and reinforces the need for robust regulatory and operational guardrails as banks adopt these instruments.
The technological effort is broadening from point products to full-stack redesigns. Global banks including JPMorgan, Barclays, Goldman Sachs, UBS, Citigroup and BNY Mellon are moving beyond proofs of concept to build platforms that embed tokenisation in payments, deposits and capital markets workflows. JPMorgan’s tokenisation work and Citi’s token services, for example, focus on continuous settlement and liquidity management, while middleware providers such as Chainlink and enterprise vendors including IBM and Oracle are being integrated to provide interoperability and lifecycle management across multiple chains.
Private-sector initiatives are proliferating alongside bank programmes. Major stablecoin issuers are adapting to the new U.S. regulatory landscape: Tether announced plans for a U.S.-focused token, USAT, to be issued through Anchorage Digital and reserve-managed by Cantor Fitzgerald, Axios reported in September 2025. Circle’s USDC remains a dominant market fixture, with Circle Internet Group reported as holding a market capitalisation near $60 billion as of May 2025. Meanwhile, platforms tokenising short-duration U.S. Treasury exposures and other ultra-safe assets have aggregated large pools of on‑chain liquidity, with industry coverage noting more than $100 billion managed by a cohort of tokenised-treasury providers.
What distinguishes the present wave from earlier blockchain enthusiasm is the convergence of demand, regulatory clarity and production-grade tooling. Banks are impressed by operational advantages, near-instant settlement, lower cross-border costs, reduced reconciliation overhead and the ability to fractionalise or programme ownership, and are moving to protect franchise economics. At the same time they are cautious: statements from incumbents stress compliance, custody safeguards and controlled access, and many choose permissioned or hybrid architectures to limit counterparty exposure.
The transition will be incremental and complex. Industry observers note that tokenisation markets could scale substantially over the next decade, but also warn of operational, legal and interoperability challenges that require coordination among banks, technology providers and regulators. For now, the balance of evidence suggests traditional financial institutions are actively rebuilding settlement and asset infrastructures on blockchain rails rather than merely experimenting, positioning themselves to participate in , or to control , a payments and securities landscape that increasingly expects assets to move at internet speed.
- https://bitcoinethereumnews.com/blockchain/big-banks-rebuild-finance-on-blockchain-rails/?utm_source=rss&utm_medium=rss&utm_campaign=big-banks-rebuild-finance-on-blockchain-rails – Please view link – unable to able to access data
- https://www.brookings.edu/wp-content/uploads/2025/10/The_Rise_of_Stablecoins_and_Implications_for_Treasury_Markets_Davidovic_Ghani_Moszoro.pdf – This report from the Brookings Institution examines the rapid growth of stablecoins, highlighting that the top ten stablecoins by market capitalization have a combined value of $258.2 billion as of August 2025. It discusses the implications of this growth for treasury markets, emphasizing the need for regulatory clarity and the potential impact on traditional financial systems. The report also explores the role of stablecoins in facilitating faster and more efficient transactions, as well as their potential to disrupt existing payment infrastructures.
- https://www.usbank.com/about-us-bank/news-and-stories/article-library/us-bank-to-provide-custody-services-for-reserves-backing-payment-stablecoins-from-anchorage-digital.html – U.S. Bank has been selected to provide custody services for reserves backing payment stablecoins issued by Anchorage Digital Bank. This partnership aims to ensure the safety and compliance of stablecoin reserves, aligning with the regulatory requirements of the GENIUS Act. The collaboration underscores the growing integration of traditional banking institutions with digital asset services, highlighting U.S. Bank’s role as a leading global custodian with extensive experience in managing assets across nearly 100 financial markets.
- https://www.americanbanker.com/news/custodia-vantage-release-first-bank-issued-stablecoin-on-ethereum – Custodia Bank, in partnership with Vantage Bank, has issued the first-ever tokenization of a bank’s U.S. dollar deposits on a permissionless blockchain. The stablecoin, Avit, was issued, transferred, and redeemed on the Ethereum mainnet using the ERC-20 standard. This initiative demonstrates the potential for blockchain technology to enhance payment systems by offering low transaction costs, fast settlement times, and programmability within a regulated banking environment.
- https://www.axios.com/2025/09/12/stablecoin-tether-hines-new-usta – Tether, the leading issuer of stablecoins globally, has announced the launch of a new U.S.-focused token named USAT. This initiative is aimed at aligning with the newly enacted GENIUS law, which regulates digital assets in the U.S. The stablecoin will be issued by Anchorage Digital, a federally licensed crypto bank, and its reserves will be held by financial services firm Cantor Fitzgerald. USAT is expected to launch by the end of the year to help U.S. businesses adapt to and participate in the growing digital economy.
- https://en.wikipedia.org/wiki/Circle_Internet_Group – Circle Internet Group is a global financial technology firm that provides internet-based payment and financial infrastructure. It is best known for issuing the USDC stablecoin, which has a market capitalization of $60 billion as of May 2025, making it the second-largest stablecoin after Tether. Circle has partnered with various financial institutions, including Binance and Coinbase, to expand its reach and services in the digital asset space.
- https://www.ccn.com/education/crypto/100b-crypto-treasuries-boom-whos-getting-rich/ – This article discusses the rapid growth of crypto treasuries, highlighting that platforms like Ondo Finance, Centrifuge, OpenEden, Superstate, and Spiko have collectively managed over $100 billion in assets. These platforms offer tokenized U.S. Treasury products, providing institutional investors with access to ultra-safe assets on-chain. The article emphasizes the role of tokenization in enhancing liquidity and efficiency in the DeFi space, as well as the increasing institutional adoption of digital assets.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
6
Notes:
The article references the GENIUS Act enacted in 2025 and mentions a Brookings Institution analysis published in October 2025, indicating a publication date of late 2025. However, similar narratives about banks adopting blockchain technology have been reported since at least August 2025, such as Ripple’s report on banks investing over $100 billion in blockchain infrastructure. ([coindesk.com](https://www.coindesk.com/business/2025/08/03/ripple-banks-have-invested-over-usd100-billion-in-blockchain-infrastructure-since-2020?utm_source=openai)) This suggests that the content may not be entirely original. Additionally, the article includes updated data but recycles older material, which raises concerns about freshness. Without access to the original publication date, it’s challenging to confirm the originality and freshness of the content. Therefore, the freshness score is reduced to 6.
Quotes check
Score:
5
Notes:
The article includes direct quotes, but without access to the original sources, it’s difficult to verify their authenticity. If these quotes are identical to those in earlier material, it could indicate reused content. Variations in wording between sources would also be a concern. Given the lack of verifiable sources, the quotes cannot be independently verified, leading to a score of 5.
Source reliability
Score:
4
Notes:
The article appears to originate from a niche publication, which may not have the same editorial standards as major news organisations. If the lead source is summarising or aggregating content from another publication, especially a paywalled one, this could further compromise reliability. Without access to the original source, it’s challenging to assess its credibility, leading to a score of 4.
Plausibility check
Score:
7
Notes:
The claims about banks adopting blockchain technology align with industry trends and have been reported by reputable sources. However, the lack of specific factual anchors, such as names, institutions, and dates, makes it difficult to independently verify the claims. The language and tone are consistent with typical corporate or official language, and there are no excessive or off-topic details. Given these factors, the plausibility score is 7.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents claims about banks adopting blockchain technology, but the lack of verifiable sources, potential paywall issues, and concerns about freshness and originality lead to an overall FAIL verdict. The content cannot be covered under our indemnity. We recommend investigating the findings carefully, verifying via the original source links, and reaching your own editorial conclusion. Anyone who chooses to publish does so at their own risk.