TASHKENT, Uzbekistan, August 24. Stablecoins and traditional correspondent banking are not mutually exclusive and can be used together to improve the speed and efficiency of cross-border payments, Sergio Mello, Global Head of Stablecoin Solutions at Anchorage Digital, said, Trend’s special correspondent reports from Tashkent.
He made the remark while speaking at the Silk Road Finance & Technology Forum.
According to Mello, Anchorage Digital is developing solutions that allow foreign correspondent banks to use stablecoins alongside traditional correspondent accounts. “Stablecoins and correspondent banking are not on opposite ends of the spectrum. In fact, what we offer is a product called Stablecoin Correspondent Banking, which enables foreign correspondent banks to fund their correspondent accounts with stablecoins alongside traditional funds, having the benefit of both systems,” Mello said.
He noted that this approach allows banks to use the traditional banking system to settle dollars outside the US while benefiting from the speed of stablecoins.
According to Mello, stablecoins can also help address liquidity challenges and improve treasury management and payment operations.
He cited Anchorage Digital’s cooperation with Western Union and participating banks in its banking network as an example. According to Mello, the solutions enable real-time payouts, which were not possible through older infrastructure. “This doesn't mean that Western Union no longer partners with banks all over the world. In fact, what we're doing with Western Union and participating banks on our banking network is helping them do real-time, 24/7 payouts, something they couldn't do with an older system,” he said.
Mello stressed that financial technology should not be viewed as an alternative to the traditional banking system. “What I would recommend is not to look at the problem as mutually exclusive technology or growth, but technology with growth,” he concluded.
