Payments Pros – The Payments Law Podcast The Future of Bank-Fintech Collaborations in Digital Finance
Oct 15, 2025
James Stevens, co-leader of Troutman Pepper Locke's Financial Services Industry Group, discusses the evolving partnerships between banks and digital asset firms. He highlights how banks facilitate fiat transactions and the potential of the GENIUS Act, which affects stablecoin reserves. The conversation also dives into how credit unions engage with fintechs, the regulatory responsibilities surrounding bank-fintech collaborations, and crucial due diligence processes. With insights on liquidity management and treasury operations, this talk unveils the future of digital finance.
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Banks As Payment On‑Ramps
- Banks are the primary on-ramps to payment networks for digital asset firms that need fiat flows.
- Partnerships let customers move fiat into and out of digital asset platforms using ACH, cards, and wires.
Digital Asset Firms Mirror Fintechs
- Digital asset firms resemble fintechs and require many of the same bank services and integrations.
- Banks can offer deposit products like DDA or savings to hold fiat between crypto trades.
Stablecoin Reserves As Bank Deposits
- The GENIUS Act allows stablecoin reserves to be held in banks as permissible liquid investments.
- Banks can capture large deposit pools from stablecoin issuers and provide treasury services around those reserves.