Chime’s reported plans could be a significant step towards establishing stablecoins for everyday consumer payments.
Chime Financial is reportedly mulling over a plan to make stablecoins a feature of its consumer banking app.
According to Bloomberg, Chime has asked blockchain technology companies to submit proposals for stablecoin wallet services that would allow customers to send and receive stablecoins without opening a separate account or using another provider.
Chime is one of the largest US fintechs, offering mobile-first banking services including checking and savings accounts, debit cards, credit products and instant money transfers.
If the plans go ahead, customers could potentially hold, send and receive stablecoins through the same app they use to manage their everyday finances, rather than opening a separate crypto account.
This could give stablecoins a presence in consumer payments, particularly for moving money between people or across borders, where the technology offers faster settlement and potentially lower costs.
Chime has not publicly confirmed the plans, but the move would be a monumental step towards stablecoins becoming embedded into mainstream financial services.
Are stablecoins entering the mainstream?
Stablecoins have been tipped to enter the mainstream for years, but the latest reports suggest the technology could be entering a new stage of adoption.
The challenge has never necessarily been finding uses for stablecoins, as B2B use cases have demonstrated they can provide faster settlement for cross-border payments and enable cheaper money transfers.
A significant number of businesses have adopted stablecoins, though the technology hasn’t really made much of an impact in consumers’ lives.
However, there are signs that this could be set to change with existing customer bases beginning to integrate stablecoins into products people use.
Sony Bank is developing a US trust bank, Connectia Trust, which is expected to issue a dollar-denominated stablecoin from 2027, subject to regulatory approvals.
The opportunity for Sony comes from the size of its ecosystem, which includes PlayStation, Sony Music and Sony Pictures. The company could introduce stablecoin payments through services consumers use, without requiring them to adopt a new financial product.
Victor Mithouard, VP of Payments and Strategy at Mambu, told Payment Expert earlier this year that consumers are not necessarily looking for stablecoins themselves.
“No one’s asking for a stablecoin. What people are asking for is cheaper, faster, more transparent, predictable payments,” he said.
Consumers don’t need to know that a stablecoin is being used if it allows them to send money internationally faster. Companies including Fiserv and Klarna have also explored stablecoin issuance, while major payments firms are developing infrastructure to support the technology.
Chime has a foot in the door
Chime could be well positioned to take advantage of stablecoin adoption because it already has the distribution that many stablecoin companies lack.
The fintech firm was among the companies that signed up to use Open USD, a stablecoin created for global money movement and is expected to launch later this year.
Chime CEO and Co-Founder Chris Britt said at the time that stablecoins were a “breakthrough technology”, adding that Open USD could provide a common framework for moving value across the digital economy.
Open USD stands out because it is being developed as a shared settlement framework that can be used by fintechs, banks and other companies. More than 140 companies have joined the initiative, including Visa, Mastercard, Stripe and Coinbase.
The stablecoin market is dominated by Tether and Circle, whose USDT and USDC, respectively, tokens account for the vast majority of stablecoin market capitalisation. However, neither has become deeply embedded in mainstream consumer banking apps in the same way that traditional payment methods have.
Where stablecoins have entered consumer-facing apps, they are usually tied to a specific company or partnership. PayPal, for example, launched its own PYUSD stablecoin, which is available through PayPal and Venmo.
