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How Banks Can Avoid Sending a Stablecoin Payment Twice

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How Banks Can Avoid Sending a Stablecoin Payment Twice

Federal Reserve and Office of the Comptroller of the Currency supervisors asked banks about unusual activity and service interruptions after the Binance hack.

In a PYMNTS Intelligence survey, 52% of credit union executives cited cybersecurity and fraud risk as a barrier to engaging with cryptocurrency.

Comments on proposed federal guidance for overseeing outside providers close Nov. 16.

Binance stopped withdrawals after attackers stole $6.3 billion in digital assets on Oct. 30. The cryptocurrency exchange restored access in stages.

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By Monday (Nov. 2), Federal Reserve and Office of the Comptroller of the Currency supervisors were asking banks in the United States whether they had seen unusual activity or interruptions of their own. One bank said its services had continued without disruption, PYMNTS reported Thursday (Nov. 5), citing Reuters.

Binance’s account of the breach said attackers had spent months getting into its systems before taking control of wallets connected to the internet, PYMNTS reported Tuesday (Nov. 3).

A bank’s own systems could remain available while a service it uses to move money is down, which remains among the risks as lenders begin to use stablecoins issued by other institutions. An issuer handles redemption, a custodian safeguards assets and a platform gives the bank a way to submit payment instructions. Depending on how these jobs are divided, an interruption at one provider could affect a bank’s ability to send a payment, confirm where it went or turn the tokens back into dollars.


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