$BTC Spain Second-largest Bank Moves to Rival Ripple, Tether in $172B Stablecoin Market #BTCUptober
Spain’s second-largest bank, BBVA, has announced plans to launch its stablecoin in 2025 in partnership with Visa, positioning itself to compete in the $172 billion stablecoin market.
This move positions BBVA as the latest entrant in the increasingly competitive stablecoin market, following the footsteps of other financial giants like Ripple and PayPal.
Francisco Maroto, BBVA’s head of digital assets, revealed in an interview that the bank is presently in the sandbox phase of Visa’s initiative designed to help financial institutions develop their tokenized assets. BBVA aims to transition from prototype to live operations by 2025.
Details On BBVA’s Stablecoin $BNB
While specific details about the stablecoin remain under wraps, Maroto mentioned that the bank has yet to decide on the backing for the asset. Options under consideration include money market funds, deposits, or fiat currencies like the U.S. dollar or euro. The primary use case for BBVA’s stablecoin will be as a settlement layer on exchanges.
Maroto highlighted that BBVA’s choice to collaborate with Visa over existing stablecoin solutions was driven by Visa’s robust brand and compliance. Notably, this gives the bank a strategic advantage, especially in Europe, where stablecoin regulations have recently been established. $ETH
Accordingly, BBVA’s stablecoin is expected to be primarily euro-based, focusing on settlement for tokenized asset exchanges.
While BBVA’s stablecoin is poised for a 2025 launch, Maroto noted that U.S. operations are not part of the immediate plans. Notably, BBVA has been exploring the digital asset landscape since 2014. Maroto expressed optimism that this venture would allow the bank to capitalize on the burgeoning trend of asset tokenization, including private credit funds and real estate. #U.S.UnemploymentNewLow
#BTCUptober Bitcoin and Ethereum ETFs Dominate 525 New Launches This Year, Claiming 13 of the Top 25 Spots
Demand for crypto-related ETFs is proving stronger than expected, according to recent data. $BTC
Nate Geraci, President of The ETF Store, Inc., recently criticized claims of limited demand for crypto-related ETF products, presenting evidence that highlights a significant trend. As Geraci pointed out, several of the top-performing ETFs launched in 2024 are tied to crypto assets, signaling a robust market appetite for digital asset exposure.
According to Geraci, out of the 525 exchange-traded funds (ETFs) launched in 2024, 13 of the top 25 are directly related to either Bitcoin or Ethereum. This figure increases to 14 when considering MicroStrategy’s MSTR Option Strategy ETF, which also has exposure to digital assets.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) secured the second spot, with an inflow of $9.84 billion. The ARK 21Shares Bitcoin ETF (ARKB) followed, amassing $2.63 billion in YTD inflow. Bitwise Bitcoin ETF Trust (BITB) rounded out the top four, garnering $2.1 billion.
Ethereum-Related ETFs Gain Traction
While Bitcoin ETFs lead in overall inflows, Ethereum-focused ETFs are also gaining traction. The iShares Ethereum Trust ETF (ETHA) is the top-performing Ethereum-related ETF, with a notable YTD inflow of $1.15 billion.
Fidelity’s Ethereum Fund ETF (FETH) follows with inflows totaling $453.66 million. This growth highlights an emerging interest in Ethereum-related products, even though they trail behind Bitcoin in overall performance.