Quick Breakdown
- BitGo introduces a model for banks to accept stablecoin deposits.
- Stablecoins exceed $1 trillion in monthly global transactions.
- Banks can integrate without blockchain development or added risk.
Traditional banks are positioning themselves to benefit from the stablecoin boom, as regulated digital asset firm BitGo unveils a framework that allows them to accept stablecoin deposits without building new blockchain infrastructure. The move signals growing convergence between traditional finance and the digital asset economy.
— BitGo (@BitGo) October 28, 2025
Stablecoins shift from threat to opportunity
Once seen as a potential threat to conventional deposits, stablecoins—whose monthly transaction volumes have surpassed $1 trillion—are increasingly viewed as a fresh revenue channel for banks. According to BitGo, financial institutions can attract new customers, grow balances, and earn transaction fees by enabling stablecoin deposits.
Under the proposed model, banks can create wallet addresses for clients who transact with stablecoins like USDC or USDT. Once deposited, BitGo’s system automatically converts these digital assets to fiat and transfers the funds to the bank’s ledger. This process not only earns banks conversion fees but also strengthens deposit bases by appealing to crypto-savvy businesses and individuals.
BitGo offers plug-and-play infrastructure
BitGo’s offering removes the need for banks to build or maintain their own blockchain systems. Instead, they can leverage BitGo’s regulated custody and prime brokerage infrastructure—trusted by thousands of institutional clients—to process, convert, and settle stablecoin transactions seamlessly.
The company says this setup gives banks a competitive edge, allowing them to offer faster settlements, lower transfer costs, and an on-ramp to broader crypto services such as trading or tokenized deposits. Over time, institutions could even launch their own stablecoins to support instant settlements or client transfers, further expanding digital asset capabilities.
With BitGo’s technology, banks can participate in the fast-growing digital payments ecosystem while remaining fully compliant—turning stablecoins from a perceived threat into a tool for innovation and growth.
Meanwhile, StableX Technologies recently partnered with BitGo to manage and secure its $100 million crypto treasury, underscoring growing institutional trust in BitGo’s infrastructure and the broader stablecoin ecosystem.
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