Traditional banks may face increasing pressure from the rise of stablecoins and tokenized real-world assets (RWAs) as these digital instruments expand beyond niche use cases, according to Moody’s Investors Service.
Limited Disruption — For Now
Abhi Srivastava, Associate Vice President in Moody’s Digital Economy Group, noted that the immediate threat to banks remains contained. A key reason is that current U.S. regulations prevent stablecoins from offering yield to users.
“At this stage, disruption risk appears limited,” Srivastava said, pointing out that domestic banking systems remain efficient and widely trusted.
Even as the stablecoin market surpassed $300 billion in capitalization last year, usage is still relatively constrained, primarily focused on cross-border payments and on-chain financial activity.
Long-Term Pressure on Banks
Despite the current limitations, Moody’s sees longer-term risks emerging. As stablecoins and tokenized RWAs gain traction, they could begin to draw funds away from traditional bank deposits.
Such outflows would directly impact banks’ ability to lend, putting pressure on their core business models. Over time, this shift could erode market share if digital assets offer more competitive financial services.
Regulatory Tensions and the Yield Debate
A major flashpoint in the debate is whether stablecoins should be allowed to offer interest. Banks have strongly opposed yield-bearing stablecoins, arguing they would directly compete with deposit accounts and accelerate capital flight from the traditional system.
This issue has become a key obstacle for the proposed Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, which aims to establish clear rules for digital asset classification and oversight.
The bill has stalled in Congress amid disagreements between crypto firms and banking lobby groups, including opposition from companies like Coinbase over certain provisions.
What Comes Next
Lawmakers, including Thom Tillis, are reportedly working on compromise proposals to bridge the divide. However, no updated framework has been formally introduced, and resistance from both sides continues.
As regulatory clarity evolves, the trajectory of stablecoins and tokenized assets will play a crucial role in shaping the future balance between traditional banking and blockchain-based finance.
