Banks Are Moving Payments to Blockchain: Can They Rival USDT and USDC?

Seven UK banks have completed pilot sterling-denominated payments on a blockchain, with CoinDesk analysis suggesting such networks could reduce corporates' need to hold stablecoins such as USDT and USDC. The trials, alongside similar experiments in Germany, point to growing bank interest in tokenized settlement as an alternative to dollar-pegged tokens. The article frames this as a potential competitive challenge to stablecoin demand from corporate treasuries, though it does not specify transaction volumes or network names. What to watch next is whether these bank-led networks move from pilot to production and whether corporate stablecoin holdings decline as a result.