Stablecoin Survival at Stake as Banks Close the Crypto Gap

Alessandro Hatami, founder of advisory firm Pacemakers and former chief operating officer of digital banking at Lloyds Banking Group, has raised the question of whether stablecoins can survive once traditional banks catch up in digital assets, in commentary published by CoinDesk. His argument centers on the growing convergence between crypto firms and established banks, and what durable advantage, if any, stablecoins would retain in that environment.

Hatami's perspective draws on his experience leading digital banking at Lloyds, one of the UK's largest lenders, giving his critique weight among industry observers tracking the intersection of conventional finance and blockchain-based payments. Stablecoins, which are pegged to fiat currencies and used for payments and trading settlement, have expanded rapidly, but banks are increasingly building tokenized deposit and digital settlement capabilities of their own.

The commentary adds to a broader industry debate over whether stablecoin issuers can defend their market position through speed, cost, and global reach as regulated banks enter the space. How that competition unfolds could shape payments infrastructure and crypto market structure in the years ahead, with regulators and financial institutions watching closely.