The Tennessee Bankers Association has named Stablecore as the digital asset technology provider of choice, giving member banks access to stablecoin, deposit tokens, and crypto-backed lending infrastructure.
Summary
- Stablecore will help Tennessee banks add stablecoins, token deposits and crypto-backed lending through existing programs.
- The approval opens Stablecore to 175 member institutions seeking digital asset tools without in-house development.
- Stablecoin reward rules remain controversial as banks warn that yield products could pressure local deposits across the country.
The move gives Stablecore a way to serve more than 175 member institutions in Tennessee. It also shows how regional banks are looking for digital assets through external providers instead of building systems from scratch.
In Tuesday’s announcement, Stablecore said the partnership will allow Tennessee banks to offer digital asset products within their existing banking systems. The company supports stablecoin accounts, payment acceptance, digital asset accounts, on- and off-ramps, token deposits, and asset-backed lending.
Tennessee Bankers Association President and CEO Colin Barrett said infrastructure partners are playing a role as banks adapt to the needs of new customers. He said customers will benefit from digital asset tools within the “secure and trusted environment of their local bank.”
Stablecore CEO and founder Alex Treece said banks need a way to provide these services while remaining compliant. He said “the implementation of digital asset systems” is an important step for banks this year as they try to retain customers.
Stablecore expands through banking networks
The Tennessee deal follows Stablecore’s entry into the Jack Henry Fintech Integration Network. That network gives fintech firms a faster route to connect with Jack Henry Bank and the credit union’s core customers.
Jack Henry said that the network supports the direct connection of fintech to its main platforms and helps banks to deploy new services quickly. It also noted that membership in the network does not mean that Jack Henry recommends or endorses each fintech product.
Stablecore’s previous announcement said the Jack Henry link gives it access to 1,670 bank and credit union customers. It also connects to more than 1,000 institutions using the Banno Digital Platform.
Stablecoin regulations remain controversial
The bank approval comes as US lawmakers continue discussions on the structure of the digital asset market and stablecoin regulations. Banks and crypto firms are focusing on how stablecoin rewards can attract deposits from traditional lenders.
In a related matter, banking groups have warned that a stablecoin loophole could drain money deposited into Main Street banks. They urged Congress to block mechanisms that allow crypto platforms to offer rewards such as yield through third parties.
Another recent report said Coinbase is opposing Senate language that would limit stablecoin rewards. Banking groups argue that such rewards may weaken deposits, while crypto firms say rewards remain part of their business model.
For small banks, the Stablecore agreement provides a way to test digital asset services without using separate crypto systems. That approach may be attractive to community lenders that want new products but don’t have large in-house technology teams.
