tl;dr
Chris Gorman, CEO of KeyCorp Bank, expressed strong optimism about stablecoins, highlighting their potential for faster, cheaper payments and institutional use similar to prime brokerage. KeyCorp plans to support clients holding stablecoins and enable cryptocurrency trading and storage on its platfo...
Chris Gorman, CEO of KeyCorp Bank, which manages assets worth $185 billion, expressed strong optimism about stablecoins, calling them a “really good solution” for clients. Speaking on CNBC's ‘Squawk on the Street,’ Gorman highlighted that stablecoins hold significant promise and offer faster, cheaper, and better payment options. He noted the institutional aspect of stablecoins, comparing it to prime brokerage, expected to be dominated by a few international banks. KeyCorp is committed to accommodating clients who want to hold stablecoins in their wallets.
Gorman acknowledged concerns about stablecoins potentially cannibalizing bank deposits but considered it a threat that is not immediate. He confidently stated that the banking industry will find ways to respond. The bank plans to enable customers to trade and store cryptocurrencies directly through its platform, further integrating digital assets into traditional banking.
Recent regulatory progress, marked by the signing of the GENIUS Act, has created a more favorable environment for stablecoins. This shift has encouraged major financial institutions like JPMorgan Chase, Bank of America, Citi, and Morgan Stanley to explore the stablecoin space. JPMorgan Chase is investigating lending against crypto holdings and engaging with deposit tokens and stablecoins, as confirmed by CEO Jamie Dimon. Meanwhile, Bank of America is actively working to launch a stablecoin, though details remain undetermined. Citi is also heavily invested in tokenized deposits, with CEO Jane Fraser confirming their active involvement. Morgan Stanley continues to monitor developments closely, signaling a broader industry trend towards embracing stablecoin technology.