Crypto and Banks: Big Promises, Small Results

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. 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, for example, has had many partnerships that didn't go anywhere. The US Securities and Exchange Commission even accused Ripple of making lots of promises to boost the value of its XRP token. Stellar, another crypto company, 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 show that these crypto-traditional finance partnerships often fail. A 2019 study found that Ripple's remittance deals didn't lead to real integration. A 2024 study pointed out the technical challenges and resistance from traditional banks. A 2025 report by the OECD concluded that blockchain technology won't solve the last-mile delivery problem in cash remittances. 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.