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Why banks are moving beyond single-provider stablecoin payment rails

2026/03/11 01:01
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Why banks are moving beyond single-provider stablecoin payment rails

Insitutions experimenting with stablecoins are shifting from single-vendor pilots to multi-provider infrastructure designed for global reach.

By AI Boost|Edited by Jennifer Sanasie
Mar 10, 2026, 5:01 p.m.
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Latest developments: 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.
  • The system routes stablecoin payouts through multiple liquidity providers across global markets.
  • The goal is to convert stablecoins into local fiat currencies more reliably while avoiding dependence on a single vendor.

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.
  • But it also created vendor lock-in and introduced operational risk if a single provider experienced downtime.

The shift to “Stablecoin 2.0”: 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.
  • This approach mirrors how traditional financial infrastructure is built across multiple vendors.
  • Lehtiniitty describes this shift as the transition from “Stablecoin 1.0” pilots to “Stablecoin 2.0” production systems.

How the network model works: Multi-provider networks help institutions manage regulatory uncertainty and improve pricing.

  • 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.
  • Payments can automatically reroute if a provider experiences regulatory issues, banking disruptions or technical outages.

What comes next: 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 to our standards. For more information, see CoinDesk's full AI Policy.

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