Community banks do not need to issue a stablecoin to benefit from stablecoins. But they do need to make sure their customers can use new forms of digital money without leaving the bank relationship behind.
That distinction matters. For years, smaller banks have watched customers move toward larger institutions with better apps, faster payments, and more convenient treasury services. An April 2025 Better Markets report found that banks with less than $10 billion in individual assets collectively held roughly $2.5 trillion, a total that had changed little over three decades even as the largest banks grew dramatically. That pressure on smaller banks well predates stablecoins.
