Traditional Banking and Crypto: Regulation and Tokenization

Traditional banking and crypto: regulation, stablecoins and tokenization

Overview

What stage is traditional banking's crypto adoption at? In this MERGE Madrid panel, with perspectives from Spain, Argentina and the UK, Santander, Bullish, N26 and a B2B crypto infrastructure firm analyze the sector's evolution: the contrast between Europe and Latin America, the regulatory framework (MiCA and the virtual asset service provider registry), stablecoins, cross-border payments and tokenization.

What you'll learn

• Europe vs LatAm: investment and diversification vs hedging and solutions
• Stablecoins: why they are the “phase zero” of tokenization
• MiCA: the lights and shadows of European regulation
• VASP registry: Argentina's case and regional convergence
• Business models: institutional trading, B2B for banks and retail banking
• Tokenization: from private markets to tokens used to back loans

Session summary

Europe vs Latin America: the panel describes a reversal of trends. In Argentina, according to the talk, around 20% of the population has had contact with crypto, mostly stablecoins as a hedge against inflation, and is starting to take more risk; in Europe the shift has been from a speculative approach to using crypto as one more asset to diversify portfolios.

Stablecoins and tokenization: it argues that stablecoins are the “phase zero” of tokenization and the foundation for later use cases, with huge potential in assets such as private equity and other still under-digitized markets.

Regulation: N26 and Bullish value MiCA for providing legal certainty and leveling the playing field, though with “shadows” (level 2 and 3 texts, supervision and uncovered areas such as DeFi). Santander and the B2B firm highlight regulatory progress in Latin America (Argentina, with a VASP registry of more than 220 players according to the talk; Uruguay, Chile, Brazil and Mexico) and Liechtenstein's role as a regulated base.

Products and models: Bullish offers institutional trading; the B2B firm gives banks a turnkey regulated crypto solution; N26 offers simple crypto buying and selling relying on an execution and custody partner; and Santander sees opportunities in custody, local and cross-border payments and tokenization.

What stage are we at?: the panelists agree it is an early phase (between “year zero” and the first years), comparable to the early internet, with distribution via traditional institutions and the convergence of banking, fintech and crypto as the next major milestone.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with Santander, Bullish, N26 and a B2B crypto infrastructure firm on traditional banking and crypto.

FAQs

How does crypto adoption differ between Europe and Latin America?
According to the panel, in LatAm hedging and solutions (remittances, payments, store of value) weigh more, and in Europe portfolio diversification, though the trends are converging.

What does MiCA bring to banking?
According to the talk, legal certainty, predictability and a more level playing field, though with areas to improve and still uncovered.

What is Argentina's VASP registry?
According to the talk, a virtual asset service provider registry that frames providers and gives users security, with more than 220 players.

Is this investment advice?
No. This content is informational and summarizes what was presented in the panel; it does not constitute investment or legal advice. Consult a professional for your specific situation.