Stablecoins Are Safer Than Banks

Thomas Cowan, Head of Tokenization at Galaxy, breaks down why stablecoins backed by treasuries are arguably safer than traditional bank deposits. When you deposit money at your bank, the money isn't actually there — it's lent back out across the economy. Stablecoins compliant with the GENIUS Act are backed by cash, repo, and treasuries sitting in custody. That's a fundamentally different risk profile.

In this conversation recorded at Solana Breakpoint 2025, Thomas walks through the three main buckets of stablecoin demand today — overseas dollar access, cross-border payments, and crypto trading efficiency — and where new use cases are emerging as regulatory clarity arrives. He explains Galaxy's major tokenization announcements with State Street and the SWEEP issuance, how tokenized money market funds work, and why stablecoins will become just another way to move dollars alongside Zelle, Venmo, and bank wires.

The conversation also covers the full landscape of digital dollars: tokenized bank deposits, stablecoins, wholesale and retail CBDCs, and real-time payment systems. Thomas gives a candid breakdown of each, drawing on his time at the Federal Reserve's CBDC team, and explains why he believes retail CBDCs are unlikely to scale when stablecoins and tokenized deposits already solve most of the demand.

Recorded at Solana Breakpoint 2025.

The content of this video is for informational purposes only and does not constitute financial, investment, or legal advice.