Why banks are moving beyond single-provider stablecoin payment rails

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Why banks are moving beyond single-provider stablecoin payment rails
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Insitutions experimenting with stablecoins are shifting from single-vendor pilots to multi-provider infrastructure designed for global reach.

Infrastructure providers are increasingly building network-based stablecoin payment systems instead of single-provider rails, said Borderless CEO, Kevin Lehtiniitty, in an interview on CoinDesk's Markets Outlook.

Borderless recently partnered with wallet infrastructure provider Dfns to launch an institutional stablecoin off-ramp aimed at banks, fintechs and enterprises.Why it matters: Early enterprise stablecoin experiments often relied on bundled providers that handled the entire stack. These “black box” solutions packaged wallets, compliance tools and liquidity access into a single product. That model helped institutions run quick proof-of-concept pilots without rebuilding their payments infrastructure.Institutions are now moving toward modular infrastructure where they control more of the stack internally. Large enterprises are selecting separate best-in-class tools for compliance, custody wallets and liquidity access.How the network model works:No single company is licensed or regulated in every country, making global payout coverage difficult with one partner. A network structure lets institutions connect to multiple liquidity providers within the same corridor.Stablecoins may increasingly operate behind the scenes as financial infrastructure. Enterprises are exploring the technology for cross-border payments, especially in emerging market corridors. Stablecoins can also reduce the need for costly pre-funded accounts used in traditional remittance systems. Over time, the technology may become embedded in payment systems rather than marketed as a standalone product. AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence toCoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events.: Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product.

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