The Tennessee Bankers Association (TBA), an industry group representing the state’s commercial banks, has selected Stablecore as its preferred technology provider for digital asset services, highlighting the growing interest of regional lenders in crypto infrastructure.
In Tuesday’s announcement, TBA said Stablecore will provide infrastructure that will enable local and regional banks to offer products such as stablecoins, tokenized deposits and digital asset-backed loans through existing systems.
The approval gives Stablecore exposure to approximately 175 of the association’s member institutions, potentially accelerating adoption among smaller banks that do not have digital assets capabilities of their own.
The partnership reflects a broader trend among established financial institutions to seek out third-party providers to integrate cryptocurrency services, rather than building the infrastructure in-house.
Stablecore develops backend infrastructure that enables banks to issue and manage tokenized assets, including stablecoins and deposit tokens, while ensuring compatibility and integration with core banking systems.
As previously reported by Cointelegraph, Stablecore recently joined the Jack Henry Integration Network, which provides digital banking technology to approximately 1,670 banks and credit unions across the United States.
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Banks are eyeing digital assets as US lawmakers debate market structure rules
Stablecore’s TSA approval comes as more regional lenders look to introduce digital asset services, even as U.S. lawmakers continue to debate the regulatory framework.
Tennessee’s junior U.S. senator Bill Hagerty, a member of the Senate Banking Committee, said last month that “there is still a lot more work to do” before Congress can introduce comprehensive market structure legislation.
Meanwhile, Sen. Thom Tillis told reporters last week that he plans to urge the Senate banking panel to take up cryptocurrency market structure regulations when lawmakers return to session on May 11.
The proposed bills aim to clarify how stablecoins are issued and supervised, which could provide a clearer path for banks to offer tokenized deposits and related services.
Source: Eleanor Terret
At the same time, banking groups continue to express concerns about the design of stablecoins, in particular whether issuers should be able to offer a rate of return or interest. Industry supporters argue that recent compromises do not provide a complete cap on profitable stablecoins, potentially blurring the line between bank deposits and digital assets.
Last month, Independent Community Bankers of America called Calls on Congress to ensure this measure addresses concerns about what it calls “the harmful impact on local economies of allowing cryptocurrency exchanges and other intermediaries to pay interest or profits on stablecoins.”
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