U.S. banks are quietly tokenizing deposits and assets on blockchains like Ethereum to enable instant settlements, while GCC fintechs in Saudi Arabia accelerate real-time payments and open banking in 2025. This convergence of blockchain infrastructure and digital payment trends signals a global shift toward efficient, programmable money rails.
U.S. banks’ strategic blockchain pivot
Major U.S. institutions prioritize tokenization of traditional assets over speculative crypto ventures. JPMorgan Chase leads with JPM Coin, now under the Kinexys platform, facilitating real-time institutional transfers via blockchain rails. Citi’s Token Services, live since October 2024, handles multimillion-dollar trade finance using tokenized deposits and smart contracts.
BNY Mellon expanded custody to Bitcoin and Ether in 2022, with OCC approvals in March 2025 allowing banks broader crypto activities under strict risk controls. JPMorgan Asset Management launched a tokenized money market fund on Ethereum in December 2025, seeded with $100 million, proving institutional-scale adoption.
Regulators shifted post-Trump’s 2025 executive order favoring digital assets, with OCC letters permitting banks to hold assets for network operations. Federal Reserve tests with tokenized deposits explore wholesale digital dollars, reducing counterparty risk through automated ledgers.
Read more: Dubai approves France’s Vancelian, accelerating fintech and crypto convergence in UAE
GCC fintech surge in digital payments
Saudi Arabia and the GCC reshape payments via Vision 2030-driven fintech, emphasizing real-time rails and blockchain integration. Platforms like STC Pay and UrPay process billions in instant transactions, boosted by SARIE’s real-time gross settlement system.
2025 trends include embedded finance, where banks partner with e-commerce for seamless checkouts, and AI-driven fraud detection on blockchain for secure cross-border flows. Open banking APIs enable data sharing, spurring innovations like buy-now-pay-later on distributed ledgers.
MORS Software highlights GCC banks adopting cloud-native cores for 24/7 operations, with blockchain pilots for remittances cutting costs by 40 percent. Saudi’s SAMA licenses stablecoin-like digital dirhams, aligning with UAE’s similar frameworks for regional interoperability.
Tokenized deposits as payment pails
Tokenized cash—bank-issued digital deposits—powers instant, programmable transfers unlike public stablecoins. These embed rules for automated settlements, slashing delays in wholesale payments. JPM Coin settles institutional trades in seconds, while Citi targets trade finance bottlenecks.
Stablecoins hit $46 trillion in 2025 volume, outpacing Visa in some metrics, with banks providing backend custody to capture fees. FedNow and RTP compete but face blockchain’s edge in programmability for micropayments and DeFi links.
GCC mirrors this: Saudi’s tokenized funds enable fractional real estate ownership, unlocking liquidity via public chains under regulatory sandboxes.
Regulatory tailwinds and challenges
U.S. OCC and Fed embrace “responsible growth,” reversing Biden-era restrictions for supervised innovation. GCC regulators like SAMA mandate blockchain compliance for anti-money laundering, fostering trust.
Risks persist: volatility warnings underscore capital exposure, though banks’ focus on tokenized fiat mitigates this. Interoperability gaps between rails like Ethereum and regional systems demand standards.
Cross-border potential shines—blockchain cuts remittance fees from 6 percent to under 1 percent, vital for GCC’s expat workforce.
Global rails emerge
U.S. banks build backend plumbing, GCC fintechs drive consumer adoption—together forging hybrid rails blending fiat stability with blockchain speed. By 2026, expect tokenized assets to dominate funds and custody, with GCC exporting models to MENA amid rising oil-digital synergies.
This evolution promises efficient finance but hinges on harmonized rules. Banks unbundling payments from lending could reshape deposits, yet partnerships with stablecoin issuers preserve revenue. For markets watchers, 2025 marks blockchain’s leap from fringe to core infrastructure.
