Banks Back Stablecore

Utah bankers have publicly lined up behind Stablecore, a fintech that helps banks offer stablecoins and tokenized deposits through their existing systems. (fintecbuzz.com) The Utah Bankers Association announced the endorsement on April 9 and said Stablecore would be its preferred digital-asset technology provider for Utah’s state-chartered banks. Howard Headlee, the group’s chief executive, said banks wanted a “practical, responsible path” into digital assets. (fintecbuzz.com) Stablecore raised $20 million in September 2025 from investors including Bank of Utah, Coinbase Ventures and BankTech Ventures. The company says its software plugs into bank core systems so lenders can add stablecoin accounts, payments, tokenized deposits and other digital-asset services without replacing their main infrastructure. (stablecore.com) (americanbanker.com) A stablecoin is a digital token designed to hold a fixed price, usually $1, and issuers typically back each token with cash or short-term Treasuries. Banks have argued that if those tokens start paying competitive returns, customers could move money out of checking and savings accounts and into digital dollars instead. (whitehouse.gov) (americanbanker.com) That fight has centered on “yield,” or rewards paid to stablecoin holders. The White House Council of Economic Advisers said on April 8 that banning stablecoin yield would increase bank lending by about $2.1 billion, or 0.02%, and called larger estimates dependent on “implausible conditions.” (whitehouse.gov) Bank lobbyists and allied analysts have pushed a much bigger number, warning that stablecoin adoption could put as much as $6.6 trillion of bank deposits at risk. American Banker reported that figure in late 2025, while the White House paper cited a 2025 analysis by Nigrinis as an example of claims running into the trillions. (americanbanker.com) (whitehouse.gov) Banks are not taking one position across the board. Trade groups have urged Congress to block financial inducements on payment stablecoins, while some banks are investing in infrastructure to issue or distribute stablecoins themselves if the rules let them compete on similar terms. (americanbanker.com 1) (americanbanker.com 2) Congress has been wrestling with those questions since at least March 2025, when the Senate Banking Committee advanced the GENIUS Act on an 18-6 vote after rejecting several bank-backed amendments. The law later took effect in July 2025, and the White House said this month that some versions of the separate CLARITY Act would go further by closing affiliate or third-party channels for yield. (americanbanker.com) (whitehouse.gov) Utah’s endorsement shows where one slice of the industry is landing: not outside the stablecoin market, but inside it, with a bank-branded technology stack and a live fight over who gets to pay returns on digital dollars. (fintecbuzz.com) (stablecore.com)