Binance and the Future of Banking: How Stablecoins Could Disrupt Traditional Finance
At the Singapore Fintech Festival, a heated debate emerged around the potential impact of stablecoins on traditional banking systems. Temasek's Pradyumna Agrawal led discussions on whether the rise of stablecoins could inadvertently dismantle fractional reserve banking—a cornerstone of modern finance. The conversation highlighted the tension between stablecoin adoption and banks' ability to create credit, as users increasingly move funds from deposits into decentralized alternatives. This shift poses existential questions for banking's core business model, with Binance and other crypto platforms positioned at the forefront of this financial revolution. As we approach 2026, the industry watches closely to see whether stablecoins will complement or compete with traditional banking infrastructure.
The Great Unbundling: How Stablecoins Could Reshape Banking's Core Business Model
Beneath the Optimism surrounding stablecoins at the Singapore Fintech Festival, a provocative debate emerged: Could the rise of stablecoins unintentionally dismantle fractional reserve banking? The discussion, led by Temasek's Pradyumna Agrawal, centered on the systemic tension between stablecoin adoption and traditional banking's credit creation mechanism.
"You take money out of deposits and put that into stablecoins, the multiplier effect gets lost," warned Takis Georgakopoulos, COO of Fiserv and former JP Morgan executive. This shift could unbundle the traditional banking equation, with profound implications for monetary policy. Stablecoin reserves, unlike bank deposits, do not fuel small business loans or credit creation—the lifeblood of economic growth.
Binance CEO Richard Teng countered the doomsday narrative, noting that most stablecoin regulations require full reserves held at banks. The debate underscores a pivotal question: As payment flows migrate to stablecoins and tokenized assets, will the financial system adapt—or fracture?
Bitcoin Breaches Key $100K Support as Liquidations and ETF Outflows Accelerate Decline
Bitcoin plunged below the psychologically critical $100,000 threshold, triggering a cascade of long liquidations exceeding $190 million in a single hour. The flagship cryptocurrency now trades at $98,550.33, marking its third breach of this support level this month amid deteriorating market sentiment.
The selloff gained momentum after Binance's order books failed to hold the $100,000 level, with total liquidations across derivatives markets reaching $655 million in 24 hours. ethereum mirrored the downturn with a 5.75% drop to $3,218.37, while Solana and BNB fell 5.2% and 3.2% respectively, demonstrating broad-based weakness across major digital assets.
Institutional demand shows signs of fatigue as US spot Bitcoin ETFs recorded $278 million in net outflows on November 12, contributing to nearly $1 billion in redemptions this month. The reversal of ETF inflows removes what had been a stabilizing force for BTC prices throughout most of 2025, leaving spot markets increasingly vulnerable to derivatives-driven volatility.
Market analysts note bitcoin has traded below the short-term holder cost basis of $111,900 since early October—a historical warning sign that often precedes extended consolidation periods. The current price action echoes May's liquidation cascade, though with substantially larger notional values at stake given today's elevated price levels.
