Trace Finance CEO: Banks Key to Stablecoin Scale

Stablecoins will not remove banks from international payments, according to Trace Finance Co-Founder and CEO Bernardo Brites. In a column published on September 6, Brites stated that companies processing large-scale stablecoin payments are becoming more integrated with traditional banking infrastructure.

Brites, whose company builds regulated banking and stablecoin settlement infrastructure linking Brazil, the United States, and emerging markets, outlined the typical components of a cross-border payment. First, a payer sends local currency through a domestic system like Brazil's Pix. Stablecoins then move the value between institutions on a blockchain. Finally, the recipient converts the stablecoins back into local currency for deposit in a bank.

The Persistent Role of Banks

Stablecoins can accelerate the middle leg of a transaction, replacing correspondent banks with on-chain settlement in seconds. However, banks are still important for the start and finish. 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 scale of the broader market shows this point. Cross-border payments reached $208 trillion in 2025, while genuine stablecoin payments for commerce were estimated at roughly $390 billion annually by late 2025. Frequently cited stablecoin transaction totals exceeding $30 trillion often include automated trading and bot activity, not commercial payments.

Scaling Demands Banking Foundations

Dependence on banking infrastructure grows with transaction volume. A firm moving $50 million a year might use one bank and one stablecoin issuer. Processing $10 billion, however, requires multiple banking relationships, foreign exchange capabilities, and licenses across different markets.

Brazil exemplifies this constraint. Pix processed over 35 trillion reais (about $6.9 trillion) in 2025, with business-to-business transactions making up 47% of the value. Any provider seeking institutional volume in Brazil therefore needs reliable access to real-denominated settlement, Pix, and foreign exchange infrastructure.

Managing Risk and Compliance

Relying on a single bank creates operational risk, as banks can terminate crypto programs or exit markets. The collapse of Silvergate Bank and Signature Bank's receivership show how quickly banking access can change. Consequently, providers need multiple bank relationships, redundant access to local payment systems, and compliance programs that satisfy regulators in each jurisdiction.

This compliance infrastructure could become a competitive advantage. Regulations like the proposed GENIUS Act push stablecoin issuers toward bank-grade safeguards, including relationships with banks holding reserve assets. A survey found 13% of financial institutions and corporations use stablecoins, while 80% of non-users are considering them.

Stablecoins offer faster, programmable settlement with less banking friction. But the column concludes that the firms most likely to build durable cross-border payment businesses will be those that first establish the necessary banking, licensing, and foreign exchange foundations.