1Money Licenses Signal Stablecoins’ Push to Outpace Banks

1Money, a stablecoin payments startup, has made significant regulatory progress by securing 34 U.S. money transmitter licenses and a Class F digital asset license from the Bermuda Monetary Authority. These licenses are a critical step toward the company’s goal of launching global “stablecoin orchestration services” via its regulated entities. The startup, which is building a layer-1 blockchain infrastructure for stablecoin payments, aims to offer a comprehensive suite of services, including a dedicated protocol, orchestration tools, and compliant fiat solutions [3].

The expansion of stablecoin use has been underscored by a surge in cross-border digital transactions. Data from January 2023 to February 2025 revealed $94.2 billion in stablecoin transactions settled globally. A survey of 295 financial executives from traditional banks, fintech companies, and payment gateways found that 90% are either using or exploring stablecoins, highlighting their growing relevance in the financial ecosystem [3]. Retailers and financial institutions, including global grocery chain Spar and e-commerce platform Shopify, have also begun adopting stablecoin and cryptocurrency payments to streamline operations and reduce transaction costs [3].

The regulatory landscape for stablecoins is rapidly evolving, particularly in the U.S., where the Senate passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act of 2025. This legislation mandates that stablecoin issuers fully back their tokens with high-quality, liquid assets such as cash or short-term Treasuries. It also prohibits stablecoin issuers from offering interest on their tokens, aiming to distinguish them from traditional financial instruments. However, the act allows crypto exchanges to offer rewards on stablecoin holdings, creating a potential regulatory loophole that could shift consumer behavior toward less traditional financial products [6].

This regulatory environment is shaping the competitive dynamics between stablecoins and traditional banking systems. Critics argue that stablecoins pose a threat to bank deposits by offering fast, low-cost alternatives to traditional financial services. If stablecoins gain broader acceptance, they could reduce the volume of deposits available for lending, thereby increasing borrowing costs for consumers and businesses. Research from the Federal Reserve Bank of Kansas City notes that incentives such as rewards on stablecoin holdings could accelerate shifts in funding and liquidity patterns [6]. Meanwhile, proponents of stablecoins, including crypto platforms like Coinbase and Circle, argue that the GENIUS Act's reserve requirements and oversight mechanisms provide sufficient safeguards to ensure financial stability and mitigate risks [6].

1Money's CEO Brian Shroder emphasized that the company’s licensing achievements enable it to "orchestrate stablecoin flows across both traditional rails and emerging blockchain infrastructure," positioning it as a bridge between legacy financial systems and the evolving digital economy. The startup’s focus on stablecoin infrastructure aligns with broader industry trends, as more traditional financial players enter the stablecoin space. For example, major institutions like Citigroup and Bank of America have signaled interest in issuing their own stablecoins, while JPMorgan Chase has launched partnerships with crypto platforms to integrate stablecoin technology into banking operations [6]. These developments indicate that stablecoins are no longer niche products but are becoming integral to the next phase of financial innovation and cross-border payment solutions.

Source: [1] What is a stablecoin? (https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-a-stablecoin) [2] Crypto firm Fireblocks launches a stablecoin payments ... (https://fortune.com/crypto/2025/09/04/fireblocks-network-for-payments-stablecoins-michael-shaulov/) [3] Stablecoin Startup 1Money Gains 34 US Licenses (https://cointelegraph.com/news/1money-stablecoin-infrastructure-licenses) [4] Technology, Payments, and the Rise of Stablecoins (https://www.imf.org/en/Publications/fandd/issues/2025/09/editor-letter-technology-payments-stablecoins) [5] Europe Needs a Euro Stablecoin by Lucrezia Reichlin (https://www.project-syndicate.org/commentary/europe-needs-a-euro-stablecoin-backed-by-ecb-liquidity-support-by-lucrezia-reichlin-2025-09) [6] The Loophole Turning Stablecoins Into a Trillion-Dollar Fight (https://www.wired.com/story/genius-act-loophole-stablecoins-banks/)