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EY research reveals that banks without digital asset strategies will lose customers to competitors who embrace blockchain-based finance
The banking industry is facing an existential moment. New research from Ernst & Young delivers a stark warning: financial institutions that ignore the stablecoin revolution risk losing customers to competitors who embrace digital asset infrastructure.
The numbers tell a compelling story. EY's global research found that 13% of large companies and financial institutions already use stablecoins, while 54% of non-users expect to adopt them by the end of 2026. Among consumers, 65 million American adults now hold cryptocurrency, with millennials and Gen Z driving increasing demand for digital asset services.
The Infrastructure Shift is Already Happening
Mark Nichols, Ernst & Young's digital assets consulting leader, puts it bluntly: banks that don't develop digital asset strategies will lose customer accounts as both businesses and consumers migrate toward blockchain-based financial services.
This isn't a distant threat. It's happening now. One in ten corporate stablecoin users in EY's survey report they're already saving money on banking fees by using blockchain infrastructure instead of traditional payment rails. These cost savings represent revenue that banks are losing to more efficient digital alternatives.
The legitimacy conferred by last year's GENIUS Act has accelerated this transition. Stablecoins now operate within a regulated framework that gives businesses and consumers confidence to integrate them into their financial operations. The result is a fundamental shift in how money moves through the global economy.
Stablecoins as Financial Infrastructure Glue
Nichols describes stablecoins as "the glue between" blockchain ecosystems and traditional commerce. This positioning makes them essential infrastructure for the evolving financial landscape.
Whether businesses are transacting on-chain, buying cryptocurrency, or purchasing tokenized securities, they need stable digital currency for payments. Stablecoins fill this role while maintaining the price stability that businesses require for operational planning and accounting.
This infrastructure role extends beyond simple payments. As more assets become tokenized and more transactions move to blockchain rails, stablecoins become the medium of exchange that enables this new financial ecosystem to function efficiently.
The Competitive Advantage of Trust
Banks have a unique opportunity in this transition. As Nichols notes, "Banks are regulated entities, and they are trusted entities. Society broadly believes in the value that banks bring. Companies definitely understand them, and the services they can provide."
This trust advantage positions banks to become "a central pillar in providing safe and sound access to on-chain finance." Rather than being disrupted by blockchain technology, banks can leverage their regulatory compliance and customer trust to become essential infrastructure providers in the digital asset ecosystem.
The key is acting before competitors capture this opportunity. Fintechs and non-financial companies have gained early momentum in stablecoin services, but banks retain significant advantages in regulatory expertise, risk management, and customer relationships.
Beyond Regulatory Waiting
Some institutions believe they should wait for additional legislation like the pending CLARITY Act before developing stablecoin strategies. Nichols argues this approach is misguided. Federal regulators already have sufficient authority through existing powers and rulemaking to support blockchain technology growth.
Banks that wait for perfect regulatory clarity will find themselves playing catch-up with institutions that built digital asset capabilities during the transition period. The regulatory framework exists today to begin developing stablecoin infrastructure safely and compliantly.
The Customer Expectation Reality
The research reveals a fundamental shift in customer expectations. Businesses want faster, cheaper, more transparent payment systems. Consumers, particularly younger demographics, expect their financial institutions to offer digital asset services.
Banks that can't meet these expectations will lose customers to institutions that can. This isn't about capturing speculative crypto trading revenue. It's about providing the fundamental payment and treasury services that customers increasingly expect to be delivered through digital infrastructure.
Building the Bridge to Digital Finance
The opportunity for banks is to become the bridge between traditional finance and the emerging digital asset ecosystem. This means developing stablecoin custody services, blockchain-based payment systems, and tokenized asset offerings that leverage existing customer relationships and regulatory expertise.
Banks that embrace this role can capture new revenue streams while strengthening customer relationships. They can offer businesses more efficient cross-border payments, provide consumers with integrated digital asset services, and position themselves as essential infrastructure in the evolving financial system.
The Choice is Clear
The stablecoin revolution is happening with or without traditional banks. The institutions that recognize this reality and build appropriate infrastructure will strengthen their competitive positions and capture new growth opportunities.
Those that ignore the shift will find themselves losing customers to more innovative competitors and missing the chance to participate in the next generation of financial infrastructure.
The choice is clear: adapt to the digital asset future or risk becoming irrelevant in it.
