A stablecoin is being launched for US regional banks facing a deposit outflow crisis due to the stablecoin boom. The aim is to enable small banks to directly introduce stablecoins to meet customer demand.
US fintech giant Paysub announced on the 24th that it will launch the stablecoin 'FIUSD' for bank customers within the year and make it compatible with its payment network. Paysub plans to allow customers using its network to utilize FIUSD without additional costs. The Paysub network currently connects approximately 10,000 financial institutions and 6 million merchants worldwide, processing over 9 billion transactions annually.
This stablecoin issuance is significant in lowering the entry barrier for Paysub's approximately 3,000 regional bank customers to more easily adopt stablecoins. The explanation is that small banks, which have been hesitant to adopt stablecoins due to technological cost burdens and lack of regulatory response capabilities, can actively respond to customer demand through the FIUSD platform.
The spread of stablecoins is considered a major threat to small US banks. If the trend of customers withdrawing funds from bank accounts and converting to stablecoins accelerates, banks' deposit base could weaken, reducing lending capacity and impacting profitability.
Paysub also plans to support functionality for bank customers to issue their own branded stablecoins. It announced that it is reviewing the introduction of deposit tokens that can create effects similar to stablecoins by tokenizing bank deposits. Takis Georgakopoulos, Paysub's Chief Operating Officer (COO), emphasized that "this project will democratize access to the stablecoin market".
FIUSD will be issued on the Solana blockchain network. Circle and Paxos are collaborating to build the issuance infrastructure. Paysub is also separately collaborating with global payment service provider PayPal, which has its own stablecoin 'PayPal USD' (PYUSD), and card brands. FIUSD will be custodied by large banks, with Paysub taking a portion of transaction fees and reserve management profits.
- Reporter Kim Jung-woo
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