As stablecoins become essential in finance, banks face custody challenges that require them to balance security, compliance, and operational efficiency, according to Paxos. The rise of stablecoins has prompted banks to reassess their custody strategies. They must ensure that they can securely manage these digital assets while adhering to regulatory requirements. Additionally, operational efficiency is crucial as banks look to streamline their processes in handling stablecoins. The interplay of security, compliance, and efficiency presents a complex landscape for financial institutions. Banks are tasked with developing robust frameworks to support stablecoin custody, ensuring they can meet client needs while navigating regulatory landscapes.
