Crypto and Banks: Big Promises, Small Results

The Promise of Crypto-Finance Collaborations

Crypto companies often team up with traditional finance firms, but these partnerships rarely live up to the hype. Solana recently announced a big deal with Western Union for its USDPT stablecoin, but experts aren't convinced it will make a real difference.

Past Failures: Ripple and Stellar

For years, crypto firms like Ripple and Stellar have made lots of noise about partnerships with banks and remittance companies. However, most of these deals fizzle out quickly.

Ripple's Unfulfilled Promises

• Ripple has had many partnerships that didn't go anywhere.
• The US Securities and Exchange Commission (SEC) accused Ripple of making lots of promises to boost the value of its XRP token.

Stellar's Abandoned Deals

• Stellar had a big partnership with IBM for cross-border payments, but that deal ended up being abandoned.
• Stellar also worked with Wyre for digital asset payments, but Wyre shut down its operations.
• Even MoneyGram, a big remittance company, tried to work with Stellar but changed its plans last minute.

Studies Highlight the Challenges

Research shows that these crypto-traditional finance partnerships often fail:

• 2019 Study: Ripple's remittance deals didn't lead to real integration.
• 2024 Study: Technical challenges and resistance from traditional banks.
• 2025 OECD Report: Blockchain technology won't solve the last-mile delivery problem in cash remittances.

The Need for Real Solutions

Crypto companies need to focus on real solutions instead of making big promises that don't pan out. It's time for them to prove that their technology can truly make a difference in the world of finance.