Trace Finance CEO: Stablecoin Scale Still Runs Through Banks

Stablecoins may replace part of the machinery used to move money across borders, but they will not eliminate banks from international payments, according to Trace Finance Co-Founder and CEO Bernardo Brites.

In a column published Sunday (Sept. 6) by Decrypt, Brites said companies processing stablecoin payments at institutional scale are becoming more deeply integrated with traditional banking infrastructure. Stripe’s $1.1 billion acquisition of stablecoin platform Bridge, Citi’s launch of crypto custody services and Standard Chartered’s stablecoin settlement tests in Singapore all reflect that convergence.

Brites has a commercial interest in the issue. Trace Finance builds regulated banking and stablecoin settlement infrastructure linking Brazil, the United States and emerging markets. His views reflect his position in that market, according to the column.

An enterprise cross-border payment typically has three components. The payer first sends local currency through a domestic payment system, such as a Brazilian importer paying in reais through Pix. Stablecoins can then move the value between institutions over a blockchain. Finally, the recipient converts the stablecoins into local currency and deposits the proceeds in a bank account, the column said.

Stablecoins can accelerate the middle leg, replacing a chain of correspondent banks and Swift messages with settlement that occurs on-chain in seconds. Banks, however, remain essential to the first and final legs, according to the column. They provide access to fiat currency, domestic payment networks and regulated compliance systems.

“Every flow still begins and ends in fiat,” the column said, describing banks as “the entry point, the compliance anchor, and the local rails in every market a payment touches.”

The disparity between stablecoin activity and the broader payments market reinforces his argument, per the column. Cross-border payments reached $208 trillion in 2025, according to FXC Intelligence figures. Genuine stablecoin payments were running at approximately $390 billion annually by late 2025, based on McKinsey and Artemis estimates.

Frequently cited stablecoin transaction totals exceeding $30 trillion include automated trading, exchange transfers and bot activity, rather than commercial payments, the column said. Institutional users, including corporate treasury departments, multinational employers and investment funds, generally begin with money held in traditional bank accounts.

The dependence becomes more pronounced as transaction volumes grow. A company processing $50 million annually may operate with one bank, one stablecoin issuer and one compliance system. At $10 billion, however, growth depends on the number of markets its banking relationships, foreign exchange capabilities and licenses can support, according to the column.

Brazil illustrates that constraint, per the column. Pix processed more than 35 trillion reais (about $6.9 trillion) during 2025, with B2B transactions representing 47% of the value. Any provider seeking institutional volume in Brazil therefore needs reliable access to real-denominated settlement, Pix and foreign exchange infrastructure.

Reliance on a single bank also creates a potentially existential operational risk. Banks can terminate cryptocurrency programs, withdraw from particular markets or revise their risk policies. The collapse of Silvergate Bank, Signature Bank’s receivership and regulatory “pause letters” released by Coinbase are examples of how quickly banking access can change, the column said.

As a result, providers need multiple bank relationships, redundant access to local payment systems and compliance programs capable of satisfying regulators in each jurisdiction, according to the column.

That compliance infrastructure could become a competitive advantage as adoption expands, the column said. The GENIUS Act’s reserve, disclosure and licensing standards push stablecoin issuers toward bank-grade safeguards, including relationships with banks holding reserve assets. An EY-Parthenon survey found that 13% of financial institutions and corporations use stablecoins, while 80% of non-users are considering them.

Stablecoins offer faster, programmable and continuous settlement with less correspondent banking friction, according to the column. But the companies most likely to convert those technical benefits into durable cross-border payment businesses will be those that first build the necessary banking, licensing and foreign exchange foundations.

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