How Stablecoin Could Shape the Competition
Nonbank fintech firms have proven themselves formidable competition for deposits, and the introduction of a stablecoin framework adds a new competitive element into the mix. While smaller banks don’t need to immediately jump into stablecoin, they can think about how they might eventually participate in it, says Michael Reed, a partner with Skadden, Arps, Slate, Meagher & Flom LLP. Banks have certain competitive advantages granted by bank charters and may be able to offer stablecoin access to customers via partnerships with stablecoin issuers.
Topics discussed include:
- Competition for Deposits
- Consumer Demand for Stablecoin
- Advantages of a Bank Charter
Michael Reed
Michael Reed is a partner at Skadden, Arps, Slate, Meagher & Flom LLP. In addition to advising traditional banking institutions, Mr. Reed regularly advises financial technology companies, specialty finance companies, mortgage banking companies, financial sponsor investors, and asset management firms on a wide range of public and private transactional, regulatory, compliance, corporate finance, and disclosure issues. His experience includes nearly two dozen bank IPOs as well as equity investments, debt financings, joint ventures, and strategic alliances, including the formation and growth of bank-fintech partnerships.
Mr. Reed regularly represents public and privately held clients in all types of M&A transactions, including public-to-public and public-to-private mergers, tender and exchange offers, proxy contests, going-private transactions, and recapitalizations. In addition, Mr. Reed advises issuers and underwriters on a variety of capital markets transactions, including public and private offerings of debt, equity, and hybrid securities, as well as complex structured finance transactions. He also counsels public companies on securities disclosure matters.