Global banks expand regulated crypto infrastructure

TLDR

Major global banks are plugging into regulated crypto infrastructure, from Coinbase-powered custody to tokenized deposits, as regulators formalize rules for stablecoins and tokenized assets.

1. Over a third of top 20 global banks now use Coinbase infrastructure, and new partnerships could connect thousands of community banks to Bitcoin and stablecoin services.
2. Large banks in the UK, Canada and Japan are piloting tokenized deposits and regulated stablecoins that keep money inside existing banking rules while using blockchain rails.
3. New rulebooks from the Fed, EU and other regulators are defining how bank stablecoins and tokenized assets must work, which will shape where crypto liquidity and users migrate next.

Deep Dive

1. Bank Infrastructure Deals

Coinbase reports that over a third of the top 20 global banks now use its infrastructure, with partnerships that could extend Bitcoin, custody and stablecoin payments to more than 3,000 US community banks via providers like Stablecore and Moov. This moves Coinbase from being just an exchange to a white-label infrastructure layer for banks and fintechs, embedding crypto access inside familiar banking apps.

In parallel, banks in multiple jurisdictions are testing tokenized bank money. UK institutions including Lloyds, NatWest, Barclays and HSBC ran the first interbank transfers using tokenized deposits for live remortgage payments and marketplace purchases, with settlement executed on a shared blockchain developed by Quant. Canadas six biggest banks are jointly exploring tokenized Canadian dollar deposits that regulators have clarified are legally equivalent to traditional deposits.

IBM is linking its Digital Asset Haven platform to SWIFTs shared ledger for tokenized deposits, with 17 banks participating in a pilot that uses existing ISO 20022 payment messages to control on chain movements. Japanese megabanks MUFG, SMBC and Mizuho are preparing yen stablecoin services under a shared framework overseen by local regulators.

2. Regulated Models And Guardrails

Regulation is catching up to this infrastructure build out. In the US, the Federal Reserve has proposed detailed rules under the GENIUS Act that would require payment stablecoins issued by banks to be fully reserved in high quality liquid assets, with clear redemption rights and specific capital charges. These proposals also create a formal application and supervision process for bank stablecoin issuers.

In Europe, the European Banking Authority has urged that crypto borrowing and lending, including bank front ends into DeFi, be brought clearly within MiCAs scope. Canadian regulators have clarified that tokenized deposits remain bank liabilities and are not treated like non bank stablecoins, while Brazil and other jurisdictions are tightening reporting, proof of reserves and licensing rules for crypto service providers that connect to the banking system.

3. What To Watch Next

Three practical signals matter from here. First, how many banks move from pilots to production services, especially in areas like tokenized deposits, tokenized bonds and bank-issued stablecoins that could compete with or complement USDC and other established coins.

Second, whether banks and regulators allow open interoperability with public chains and DeFi, or keep most tokenized cash and securities inside permissioned networks connected through gateways like SWIFT and IBMs Haven. This will affect how easily crypto-native users can plug into bank-issued assets.

Third, how crypto platforms respond. Infrastructure providers that already serve both banks and retail, such as Coinbase, are positioned to benefit from this convergence, while smaller or lightly regulated players may face licensing, capital or access constraints as banks consolidate flows on regulated rails.

Confidence: high, based on multiple recent bank pilots and regulator proposals.

Conclusion

Global banks are not simply getting into crypto; they are extending regulated money and securities into blockchain form and wiring that into their existing systems. For crypto users, that likely means more bank-based access to Bitcoin, stablecoins and tokenized assets, but also tighter compliance and a shift in liquidity toward infrastructures that satisfy bank and regulatory rulebooks.