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Stablecoin issuers resemble banks in how they manage deposits

Reported · Written up by our desk · Stablecoins

In a new analysis from The Block, stablecoins are described as cryptocurrencies pegged to a reference asset, including the U.S. dollar or the euro. The outlet notes that, in practice, many stablecoin issuers take in cash deposits and then issue coins on-chain.

According to The Block, this operating model makes stablecoin issuers similar to traditional banks in that both hold large pools of deposits as part of their business. The key difference highlighted is that stablecoins use an on-chain issuance mechanism rather than a conventional bank ledger.

The piece frames the comparison as a way to understand how stablecoin structures map to familiar financial workflows, even as the underlying technology and settlement differ.

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