GFT’s experience launching decentralized finance projects across Latin America, Europe and Asia has informed the launch of its new US-based offering.
Global digital transformation company GFT announced its work to guide US-based banks as they launch their own stablecoin products. This work will take into account upcoming US regulatory considerations for payments stablecoins, ensuring compliance for organizations that choose to launch their own.
GFT’s decades of experience in decentralized finance, including its work with Standard Chartered Bank via its innovation, fintech and ventures arm SC Ventures and Deutsche Bank to complete the first proof-of-concept digital currency transfer on the Universal Digital Payments Network (UDPN), will expedite US-based banks’ ability to launch, manage and transact stablecoins. „Now, banks will be able to bring new stablecoin products to market quickly–with minimum business disruption.” – the company said.
Stablecoins have experienced substantial growth across the globe over the past year, reaching an adjusted transaction volume of $6 trillion, a 63% year-over-year increase. While banks like JP Morgan are venturing into decentralized payments technology to enhance transaction efficiency, for most banks, building stablecoins within the context of existing technology is tricky due to the vast array of technologies to choose from – even with the promise of federal regulation that will reduce risk.
GFT works in tandem with the bank’s existing core banking and payments ecosystems, such as Thought Machine, to launch compliant stablecoin products that not only meet their current needs, but also scale for the future. The new offering provides banks:
The right decentralized financial technology within their current ecosystem. By having a complete understanding of the bank’s core banking system, payments ecosystem and the value the bank is looking to bring customers with stablecoins, GFT provides recommendations about what technology components the bank should leverage that will work alongside their existing systems without significantly altering established workflows.
A framework that meets current and evolving regulations. Recent federal regulatory advancements indicate there is a framework on the horizon for payment stablecoins, or coins backed by fiat currency to make transactions. While implementing the technologies specifically identified for each bank’s unique technology environment and business needs, GFT ensures that the system can meet current policy expectations and can easily adapt as changes arise.
The ability to scale with demand and transaction value. As banks roll out their stablecoin offerings and create new products, the amount of funds and volume of transactions will increase, meaning banks will need to scale their ability to transact stablecoins over time. Each project GFT works on is designed with scalability in mind.
“A regulatory framework for stablecoins is good news for banks, as they can now safely launch stablecoin products to create value for their customers through more efficient transactions,” said Christopher Ortiz, GFT Region Manager North America, APAC and UK. “Over the last decade we have enabled banks around the world to take advantage of decentralized finance. As U.S. regulations now open up this market to stateside banks, we are ready to use our in-depth expertise to support US banks as they look to launch stablecoin products and services.”
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