Key Takeaways:
Bernardo Bilotta notes Asia handles 50% of global stablecoin flows, but banks fear regulatory risk. Tether and eStable now enable local coin issuing for Stables to bridge the 99% USD market dominance. By 2026, local stablecoins will likely serve as last-mile settlement rails for regional payouts. The Dichotomy of Asia’s Stablecoin Rush The Correspondent Banking TrapBeyond local regulators, Asian banks must answer to a global hierarchy. To facilitate international trade, these institutions rely on correspondent banking relationships with partners in New York and London.
Critics argue these silos hamper growth, as a token compliant in one city may face hurdles just an hour’s flight away. However, Bilotta views this not as a roadblock but as a necessary phase of convergence.
“Until the cost of inaction exceeds the cost of action, the status quo holds,” Bilotta said. The cautious stance of Asian banks isn’t irrational—it is a defensive crouch. However, as the infrastructure layer becomes more robust and local-currency tokens begin to solve the “last-mile” problem, the pressure on these institutions will only grow. The question for Asia’s banking sector is no longer whether they understand the technology but how much longer they can afford to prioritize survival over evolution.
