Are Closed-Loop Financial Instruments Stablecoins’ Future?

Stablecoins, which have become a buzzword du jour for the traditional financial and payments space, are one potential vector of travel. Bank of America, for example, is reportedly eying its own stablecoin, as well as the creation of a separate coin issued by a banking consortia, pending U.S. regulation.

“We have this pretty well understood … but the problem before was it wasn’t clear we were allowed to do it under the banking regulations,” Bank of America CEO Brian Moynihan said at a recent conference.

In another regulation-pending stablecoin move being considered, the Depository Trust & Clearing Corporation (DTCC), which is responsible for the clearing and settlement of nearly all U.S. stock trades, is reportedly weighing the option of utilizing a U.S….