Meeting customer needs is an imperative for financial institutions aiming to stay competitive. But innovations often run into the elephant in the room: outdated and incompatible banking tech stacks.
Offering financial and payment solutions such as blockchain and stablecoin services isn’t as simple as flipping a switch; it requires a reimagined back end capable of delivering speed, security and scalability.
“Going back into my career, the challenges we saw between FinTech companies creating new products and the natural friction with bank partners inspired us to build a bank from the ground up that caters to FinTech and blockchain,” Miles Paschini, CEO at FV Bank, told PYMNTS.
“FV Bank was really founded out of necessity,” he added, noting that the FV, which stands for “FinTech Ventures,” reflects this mission.
As the demand for blockchain-based services grows, driven by client interest in cryptocurrency custody, tokenized assets, and real-time settlement, banks are under pressure to revamp their core infrastructure.
Stablecoins in particular have emerged as one way for banks to stand up the crypto and FinTech innovations their customers desire. However, incorporating stablecoins into banking operations is not without its challenges. Banks require robust infrastructure to ensure seamless, secure and compliant stablecoin integrations.
“This isn’t about replacing existing systems. It’s about providing an additional option. Where stablecoins offer superior benefits, customers will naturally gravitate toward them,” Paschini said, noting that he views stablecoins as complementary to traditional payment rails like ACH, Fedwire, and Swift.
Read more: FV Bank Expands Stablecoin Offerings With PayPal Pact
On Jan. 9, FV Bank announced that it was integrating PayPal’s stablecoin PayPal USD (PYUSD) for direct deposits and outbound payments, building on its existing support for Circle’s USDC and Tether’s USDT.
This evolution, Paschini explained, stems from a clear strategy to offer customers innovative solutions for payments and transactions.
“More than two years ago, we integrated Circle’s USDC stablecoin into our platform,” he shared. “Customers could raise an invoice and accept payment in USDC as a U.S. dollar deposit, without needing a wallet or exchange account. Similarly, they could convert U.S. dollars to USDC and send payments to wallet addresses.”
This straightforward process lowered barriers to adoption. Paschini observed that once customers began using stablecoins, they often favored them over traditional wire transfers due to their efficiency. “With PayPal’s PYUSD, we’re looking to move this capability into more traditional small and medium-sized enterprises, extending their ability to accept and make payments without needing expertise in blockchain.”
While early adoption was concentrated among digitally native companies like crypto exchanges and OTC desks, Paschini noted a growing interest from traditional businesses.
“We’re seeing broker-dealers use stablecoins to settle international securities transactions faster and more cost-effectively than wires,” he said. In regions with volatile currencies, businesses can leverage stablecoins to circumvent high foreign exchange spreads, providing a practical solution for cross-border payments.
One particularly promising use case is freelancer compensation. “If you’re a software developer in Latin America working for a U.S. company, you can receive your payment in stablecoins,” Paschini explained. “This avoids local currency conversion fees and provides immediate access to U.S. dollars.”
Paschini emphasized that FV Bank’s success lies in making blockchain technology accessible. “The first step was removing barriers to trying out stablecoins,” he said. “We’ve designed our platform to make the process seamless, with integrated wallets and automatic liquidation.”
Compliance is another cornerstone of FV Bank’s approach. “Every transaction involving stablecoins undergoes anti-money laundering (AML) screening based on blockchain activity,” Paschini noted. “This protects our customers and fulfills regulatory obligations.” By investing in technologies that offer visibility into blockchain transactions, FV Bank provides a level of security that traditional banks with limited blockchain integration cannot match.
Having already integrated three major stablecoins, FV Bank is setting its sights on further expansion. “We’ve developed a template for stablecoin integration that’s about 95% transferable to new projects,” Paschini explained. “Our goal is to become a global leader in stablecoin integration, making blockchain interaction easier for customers.”
While acknowledging challenges for traditional banks with outdated infrastructures, Paschini remains optimistic. “As more banks integrate blockchain capabilities, customers will have greater choice in transferring value,” he said. “We’re blazing the trail for a future where blockchain is just another payment rail.”
Looking ahead, Paschini predicts a significant role for blockchain in financial services. “Stablecoins will be a competitive alternative to traditional systems,” he asserted. The transparency, speed and security of blockchain transactions make them attractive for both businesses and consumers.
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