The recent American Banker’s 2025 On-Chain Finance Report reveals a growing yet cautious interest in cryptocurrencies, stablecoins, and other digital assets within the banking sector. Conducted among 142 employees from banks, credit unions, and payment companies, this survey indicates that while discussions around digital currencies are prevalent, actual implementation remains limited.
Key findings suggest that the issuance of stablecoins has yet to gain traction. A mere 2% of surveyed institutions have successfully launched a stablecoin, and another 2% are currently piloting such projects. Meanwhile, 4% are planning to launch or pilot stablecoins, and another 4% are looking to partner with other banks in this effort. Notably, about 70% of respondents are still at the discussion stage regarding stablecoin issuance, while 15% have opted against launching one altogether.
A breakdown by institution type reveals that regional or national banks with more than $10 billion in assets show the most progress, with 6% having either launched or piloted a stablecoin. Conversely, community banks exhibit a cautious stance, with 24% of leaders deciding against issuing a stablecoin, although 43% of credit union executives are in preliminary discussions to develop one.
The report also highlights ongoing debates regarding digital wallets and custodial services for digital currencies. Fifteen percent of respondents indicated their institutions are actively offering or planning to provide digital wallet services for cryptocurrencies like Bitcoin and Ether within the next year. Additional findings show that 31% are discussing custodianship without immediate plans for implementation, while 12% showed interest in offering custodial support for stablecoins such as Tether and USD Coin.
Despite some existing services, transaction capabilities involving cryptocurrencies and stablecoins are still in their infancy. Only 11% of respondents reported that their organizations currently offer or plan to offer transactional services with public cryptocurrencies in the next year. Conversely, an additional 12% are engaging in transactions involving stablecoins, with 31% still discussing these plans.
When assessed by institution category, regional or national banks stand out, with 19% currently providing or planning these transactions. By contrast, community banks lag significantly, with only 2% of respondents offering such services.
Furthermore, nearly 20% of surveyed experts acknowledged that their organizations are investing in or holding public cryptocurrencies, while stablecoins are held by 11%. A significant 70% of respondents, however, reported that they do not hold any digital assets. Larger banks are notably more engaged in this space; 51% of regional or national banks have some exposure to public cryptocurrencies or stablecoins, compared to just 21% of credit unions and 10% of community banks.
In conclusion, the findings underscore a significant divide between larger financial institutions and their smaller counterparts in the realm of digital asset investment and implementation. The trajectory of on-chain finance continues to evolve, as many banking entities remain cautious but are increasingly looking to explore the opportunities presented by digital currencies.
