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# How will stablecoins impact banking-as-a-service?
- URL: https://www.embeddedfinancereview.com/how-will-stablecoins-impact-banking-as-a-service/
- Published: 2025-01-10T14:34:00.000Z
- Updated: 2025-11-05T14:35:29.000Z
- Description: Stablecoins will improve banking-as-a-service but not replace it. Why regulatory friction remains regardless of technology and evolution beats revolution predictions.
- Author: Lars Markull
- Tags: News, Crypto

**What happened:** If you have read a couple of fintech newsletters lately, chances are you have read about stablecoins. My favourites were [Matt Brown](https://notes.mtb.xyz/p/stablecoins-1000-words?publication%5Fid=51204&post%5Fid=154279712&isFreemail=true&r=3on0pq&triedRedirect=true&%5Fbhlid=818d04990668560105aafde997e997138a8f61d5&ref=embeddedfinancereview.com)’s intro article to stablecoins, [Simon Taylor](https://www.fintechbrainfood.com/p/stablecoins-are-better?%5Fbhlid=4ce001a7e2f3831d516c88fdf6790569f00270df&ref=embeddedfinancereview.com)’s piece on why Stablecoins are better but not necessarily cheaper, and perhaps this [LinkedIn post](https://www.linkedin.com/posts/maxvonwallenberg%5Fstablecoins-are-the-new-baas-going-into-activity-7276894779408277504-OH1I/?%5Fbhlid=0c4f97c385111f365e17da3f92c5c63bc65f0cee&ref=embeddedfinancereview.com) highlighting a couple of providers in the space (incl. the startup of the post’s author).

**My comment:** There is not enough space in this newsletter to go through all these details, but if you ask me about the impact of stablecoins on fintech, I would paraphrase Simon Taylor and say, “It’s not the question of ‘if’ but rather ‘how’ and ‘when’”. Perhaps stablecoins will transform our industry; however, I would be careful when making statements like stablecoins will replace banking-as-a-service (I remember [this piece](https://www.thisweekinfintech.com/in-with-stablecoins-out-with-baas/?%5Fbhlid=1ea0219fb9d1feeb31c007b0387eee5b2462a218&ref=embeddedfinancereview.com)). While there may be many things you want to improve in banking-as-a-service, not all of them can be achieved with technology alone. I would argue that stablecoins can improve fintech and, thus, banking-as-a-service, but that’s likely more of an evolution than a revolution. Especially when you remember that much of the friction in the banking-as-a-service industry is created by regulation, which will not necessarily be much better with stablecoins. So remember, when you compare stablecoins to banking-as-a-service, you often compare the reality of banking-as-a-service to an ideal scenario of stablecoins.