SKN | TradFi May Embrace 24/7 Crypto Rails Faster Than Expected as Stablecoin Debate Heats Up

Key Points

• Bitwise says traditional finance could adopt 24/7 crypto payment rails sooner than anticipated.
• Jamie Dimon argues stablecoin issuers paying interest should be regulated like banks.
• Washington remains divided over whether yield-bearing stablecoins should face bank-level oversight.

According to crypto asset manager Bitwise Asset Management, traditional financial institutions may integrate 24/7 crypto settlement rails faster than many expect.

The firm argues that stablecoins and blockchain-based payment infrastructure are increasingly attractive to banks and asset managers seeking real-time settlement, lower costs and continuous global access — features that legacy systems struggle to provide.

As stablecoin legislation advances in Washington, clearer regulatory guardrails could accelerate institutional adoption of blockchain-based rails for payments and asset transfers.

Dimon Calls for Bank-Level Rules

At the same time, Jamie Dimon, CEO of JPMorgan Chase, said stablecoin issuers offering interest on customer balances should be regulated as banks.

In a CNBC interview, Dimon drew a firm distinction between transaction-based rewards and interest paid on stored balances.

“If you are going to be holding balances and paying interest, that’s the bank. You should be regulated by a bank,” he said.

Dimon argued that firms operating like deposit-taking institutions must meet equivalent standards, including capital and liquidity requirements, anti-money laundering rules and federal deposit insurance safeguards.

He framed the debate as one of fairness and systemic safety, calling for a “level playing field by product.”

Tension With Crypto Industry

Dimon’s comments follow reported disagreements with Brian Armstrong, CEO of Coinbase, over the proposed CLARITY Act.

While Armstrong has suggested banks should compete directly with stablecoin issuers, Dimon maintains that comparable products require comparable oversight.

Despite the regulatory push, JPMorgan itself has embraced blockchain infrastructure, developing a deposit token and using distributed ledger systems for internal payments and data transfers.

“We’re in favor of competition,” Dimon said. “But it’s got to be fair and balanced.”

Washington’s Pivotal Moment

Lawmakers and the White House continue reviewing draft language that could define how stablecoin issuers operate in the United States.

A central question remains whether issuers should be allowed to offer yield on customer balances — a feature that could make stablecoins more competitive with traditional bank deposits.

If regulators provide clarity without imposing prohibitive restrictions, Bitwise suggests traditional finance may move more quickly than expected to adopt crypto-native rails, reshaping how money moves across the global system.