Core Insights - Standard Chartered has become the first major bank to enable spot trading of cryptocurrencies, indicating a significant shift in the financial landscape [1] - The bank is exploring the use of stablecoins and digital assets for local and global payments, recognizing their potential to transform the payment system [2][3] - There is a growing belief that digital asset wallets will gain traction, leading to a shift from conventional payment methods to stablecoin-based systems [4] Industry Trends - Regulators are preparing for a new wave of technology, with stablecoins primarily used in cryptocurrency trading and as a store of value for those lacking trust in national currencies [3][6] - The market capitalization of cryptocurrencies and digital assets remains low, with stablecoins currently experiencing daily flows of $20 billion, which is less than 1% of global payment system flows [6][7] - The potential for stablecoins to be issued by mainstream banks is being considered, with Standard Chartered already issuing Hong Kong dollar stablecoins and exploring tokenized bank deposits [4][7] Regulatory Considerations - The focus of regulators is on ensuring that stablecoins are backed by appropriate reserves to trade like cash, which is crucial for their acceptance and use [8]