As digital payment giants, banks and blockchain upstarts battle to redraw the global financial map, the new race is for control of value itself. This Capital Pioneer article, from our latest print edition, digs into how payments are facilitating the change…
In the high-stakes world of digital finance, the old question who controls the money? has taken on an entirely new meaning.
As digital assets move from fringe to integral infrastructure, alliances and rivalries are being formed.
Payment companies and financial networks are picking sides, forming partnerships and laying the groundwork for a new financial order, from stablecoin rails to tokenised settlement layers and beyond.
Across continents, governments are rethinking their monetary infrastructure while tech firms quietly build their own. The result is a fragmented yet fast-converging ecosystem: part financial evolution, part geopolitical realignment.
Cryptocurrencies, stablecoins and tokenised assets used to be niche, but now they’re part of major plumbing reconfigurations behind the scenes. These innovations are creating competition and tension in the battle to define the next era of global finance.
The strategic fault lines are shifting slowly, but surely, as the digital payments landscape is being reimagined.
A new era of financial sovereignty
Control is now contested across an expanding digital frontier where money moves at the speed of code, and ‘sovereignty’ is as much corporate as it is national.
“National sovereignty is about control over currency and capital flows. Think Central Bank Digital Currencies (CBDCs), or stablecoins denominated in local currencies,” says Valentin Vincendon, chief product officer at BCB Group.
“Company-level sovereignty is about vertical integration: controlling blockchain infrastructure, stablecoin issuance, distribution and customer relationships.”
This distinction matters because the lines between government, banks and private payment providers are fast blurring. The US dominates stablecoin issuance, prompting other regions – notably the EU, UK and parts of Asia – to develop frameworks of their own.
In the UK, this shift has been formalised through the Mansion House Financial Services Growth and Competitiveness Strategy, unveiled in July 2025. It outlined a National Payments Vision focused on tokenised finance, interoperability and the exploration of a digital pound.
Across the Channel, the EU’s PSD3 and Instant Payments Regulation are reshaping the compliance terrain, with overlapping deadlines stretching through 2028.
What was once a quiet, technical debate about making payments faster has become a contest for monetary self-determination, and the power to set the rules of the next global financial system.
Alliances and interoperability
While some networks in today’s payments industry are investing in interoperability layers, others are building proprietary ecosystems. “Some players want interoperability only within their own ecosystems,” Vincendon warns. “They aim to set standards others must adopt, not to open up universally.”
This new tension – between open networks and proprietary ecosystems – is defining what some insiders call the “network wars”. On one side are companies like Visa and Mastercard, investing in multi-token networks and interoperable rails. On the other are private, closed systems such as JP Morgan’s Kinexys (formerly Onyx) or Citi’s Token Services, built to operate within strictly controlled environments.
For Charlotte Hill, partner at international law firm Penningtons Manche Cooper, it’s more a realignment than a rivalry, as the divide between traditional and digital finance becomes fuzzier.
“The once-clear boundaries between banks, payment networks and blockchain firms are dissolving,” she says. “Behind the scenes, many traditional businesses are already using stablecoins to invest more quickly and cheaply, even if consumers aren’t aware of it. This new wave of finance benefits everyone, from big institutions to everyday consumers.”
“Firms know the space is evolving quickly, and if they don’t act now, they’ll be left behind. Because traditional banks often lack the agility to do this alone, they form alliances with tech firms that bring innovation and speed, which can be mutually beneficial.
“When you think about proprietary ecosystems – those digital ‘walled gardens’ – versus open, interoperable systems, the real value lies in strategic partnerships,” Hill adds. “These alliances bring different capabilities together to solve real-world problems.”
That convergence has been underscored by the Citi–Coinbase alliance, a landmark partnership that bridges the institutional and crypto-native worlds. Dubbed a “network of networks,” it enables Citi to orchestrate digital asset payments for institutional clients, while Coinbase gains access to Citi’s regulatory and liquidity reach. It signals a hybrid model in which open access meets curated infrastructure.
Hill adds: “It’s not just about having a new product; it’s about doing something more efficient or affordable that unlocks mutual growth. Partnerships like Citi working with Coinbase – the established bank joining forces with a newer player – can expand their reach, use new technology and build long-term partnerships that work for both sides.”
But is it collaboration, competition or survival driving these alliances? John Hallahan, head of business solutions & advisory EMEA at digital asset and stablecoin infrastructure company Fireblocks, told Capital Pioneer it’s a mix of each.
“Blockchain use cases require new infrastructure, such as wallets, private keys, and connections to multiple blockchain platforms,” he said.
“Traditional providers often outsource this complexity to infrastructure firms like Fireblocks or licensed crypto-native providers. For example, stable coins exist across 10 to 20 different blockchains, unlike traditional systems like Faster Payments or SEPA, which are singular.”
Hallahan continues: “For remittance-focused firms, it’s survival. They’re being disrupted and have launched stable coin projects. For traditional giants like Visa and WorldPay, it’s innovation and expansion. And for new entrants like MoonPay, it’s about disruption.”
Perhaps it’s a glimpse of a future where competition gives way to coalition – not to share profits, but to share survival.
The geopolitics of payment power
Sovereignty, in this context, is not merely a technical term but a strategic weapon. The rise of central bank digital currencies (CBDCs) and regulated stablecoins has transformed payments into a form of economic statecraft.
“Payments are economic power,” Hill says. “Governments want domestic systems that reduce reliance on foreign networks. The Russia–Ukraine conflict highlighted that vulnerability, and now everyone wants self-sufficiency.”
The US’s GENIUS Act, which established a federal stablecoin framework, accelerated this race.
By legitimising US-based stablecoins like USDC, it effectively extended the reach of the dollar, not through banks or military might, but through code.
That prompted rapid responses abroad. The EU moved to integrate stablecoins within its MiCA regime, and the UK fast-tracked its own legislation on tokenised payments and operational resilience. Meanwhile, Asian economies have positioned themselves as laboratories for programmable finance.
The result is a geopolitical chessboard where alliances between payment networks, infrastructure providers, and regulators will shape how and where value moves.
Infrastructure wars: inside the new payment order
According to global tech strategists Juniper Research’s Top 10 Fintech & Payments Trends 2026, there is a pivotal shift as digital assets and intelligent technologies move from the periphery to the core of financial infrastructure.
We’re seeing a reconfiguration of how value is exchanged globally, such as stablecoins poised to challenge traditional interbank settlement systems, the rise of agentic AI in commerce, and the mainstreaming of tokenised assets, the research says. For payment providers, this arguably marks a critical juncture.
No longer merely intermediaries, they are gradually becoming architects of a programmable and data-rich financial ecosystem.
With innovations such as EUDI digital identity wallets, flexible card credentials and commercial variable recurring payments (VRPs) in the UK, payment providers are redefining user experience and trust. Meanwhile, AI-driven fraud prevention and no-code AML tools are becoming essential defences in an era of deepfakes and hyper automation.
At the core of this transformation lies the invisible architecture that moves money and verifies identity. Newer entrants with growing influence, such as Fireblocks, Adhara and Fnality, are building the connective tissue between banks, blockchains and corporate treasuries.
Tokenisation meets treasury
As payments evolve, so too does the corporate treasury, perhaps the silent partner in shaping global finance. Payment firms are increasingly involved in tokenised treasury flows, not just consumer payments. This shift positions them as enablers of programmable finance and real-time settlement.
“Tokenised treasury flows could revolutionise corporate finance,” says Vincendon. “Corporates could automate payments tied to contract fulfilment, optimise liquidity and manage reconciliation more efficiently. While we’re early in the adoption curve, this shift will be transformative.”
Programmable money – funds that can execute conditions automatically – means a world where a logistics firm can release payment the moment a shipment clears customs, or a manufacturer can settle invoices instantly across borders.
For chief financial officers, this promises shorter lock-up periods and better yield management. For banks, it’s more complicated. “Payments are both a cost and a missed revenue opportunity,” Vincendon notes. “As real-time payments and programmable money spread, corporates gain flexibility and banks lose margin.”
Hallahan of Fireblocks explains how the rise of tokenised settlement layers and stablecoins is arguably redefining who has control over liquidity and cross-border value flows.
“We’re shifting to a world where everyone – individuals and corporates – has a wallet,” he says. “You can now send money from the UK to Brazil without a bank, using providers like Coinbase or local exchanges. That threatens incumbents but also creates opportunities.”
Banks and payment companies will have to innovate in order to stay competitive, with stablecoins, tokenised deposits and supporting stable coin payments, Hallahan says.
Part of this evolution is multiple forces aligning to narrow the balance of power between banks, fintechs and digital-native firms, from geopolitics and blockchain adoption to a steady loss of trust in traditional systems.
The upshot of this is pushing incumbents and newcomers to collaborate, rather than to compete. With experienced trad-fi professionals crossing into digital assets, and tech-savvy minds entering traditional finance, there’s a chance for firms to bridge both worlds.
“The winners will be those who embrace the technology, and partner with best-in-class firms,” Hallahan adds. “Trying to build it alone is risky and complex. Traditional firms should focus on business models and use cases, and not on rebuilding the plumbing.”
If governments are racing to control digital money, so too are corporations. “As marginal costs drop, those with capital will negotiate better terms,” BCB’s Vincendon predicts. “The corporates with large treasuries will extract the most value. Payment providers will extract less over time unless they offer differentiated services.”
If that is the case, then fraud prevention, data analytics and smart infrastructure may become as valuable as the movement of money itself, becoming strategic assets of their own beyond the payments sphere. The firms that succeed will be those that balance speed with compliance.
“Some firms build fast but take regulatory risks, while others over-engineer compliance and delay market entry. It’s about automating wisely and choosing partners carefully. Aligning on regulation and strategy is critical,” Vincendon adds.
However, with innovation comes regulation and risk. Cybersecurity, compliance and operational resilience are becoming increasingly defining factors of competitiveness. As networks expand, they become more vulnerable to attacks, and regulators are watching closely.
Hill points to recent incidents such as that caused by a global CrowdStrike update that exposed the fragility of digital systems and urges companies not to underestimate the value of cybersecurity.
“If one part of an alliance fails, the whole network can be affected,” she warns. “Diversify your systems, so you’re not dependent on a single provider.”
What’s more, new entrants from tech backgrounds often underestimate how heavily regulated financial services tend to be. The key lessons are safeguard your systems, spread your operational risk and understand the compliance landscape before you scale.
In Europe, PSD3 is tightening controls on authentication, data sharing and consumer protection, while the US GENIUS Act demands transparency and reserve backing for stablecoin issuers. The message is clear: innovation will be allowed, but only under supervision.
Lessons to be learned
For Hill, these alliances are more than simply mergers to increase market share. “They bring together different skill sets and areas of expertise to challenge traditional banking and payment systems. Firms like Amazon and PayPal are now offering their own forms of tokenisation and stablecoin-based payments.”
Hallahan cites Stripe as a “perfect example” of how alliances can work between payment providers and says smaller providers could learn a lot from their commitment and execution.
“They’ve partnered with firms, acquired companies like Bridge and Privy for cross-border payments and wallet infrastructure, and are involved with a blockchain called Tempo. Stripe now owns the stack – blockchain, wallet and services – and supports stable coin accounts in 100 countries.”
But in an environment where speed, reliability and resilience are imperative, is there a risk that legacy systems may hinder progress?
“Consumers still trust traditional financial systems and want that familiarity, especially in retail finance,” Hill says. “But behind the scenes, B2B transactions are changing fast, particularly in international trade, where stablecoins and tokenisation offer major advantages.”
From Washington to Westminster, from Wall Street to Singapore, the payments ecosystem is being rebuilt in real time. Stablecoins, tokenised deposits and CBDCs are converging into a single global language of money that’s programmable, interoperable and instant.
Yet for all its speed and sophistication, the new order remains precarious. Perhaps the same technologies that promise efficiency and inclusion also risk creating new monopolies not of states, but of networks.
One thing is for sure – the divide between incumbents and disruptors is narrowing. The winners will be those who bridge both worlds and create value across the whole payment rails ecosystem. Whoever controls those rails could end up steering the flow of capital in the 21st century.
Inside the New Payment Order
Some key global alliances and developments:
Citi × Coinbase
A partnership designed to simplify access to tokenised finance, bridging traditional banking and digital assets to streamline fiat on/off ramps and orchestrate digital asset payments for institutional clients.
Major credit cards
Visa and Mastercard are building operability layers to bridge traditional finance with blockchain. Visa uses Ethereum and Solana for stablecoin settlements, while Mastercard’s Multi-Token Network supports interoperable digital assets.
UK Mansion House Strategy
The July 2025 speech unveiled its Financial Services Growth and Competitive Strategy, focusing on tokenised payments, stablecoin regulation and interoperability. The National Payments Vision committed to a secure, innovative payments landscape and a potential ‘digital pound’.
EU PSD3 Package
The EU’s Instant Payments Regulation and PSD3 package are reshaping the compliance terrain. Firms face overlapping deadlines through 2028, forcing strategic reassessments of digital asset integration and operational resilience.
JPM Coin
JPMorgan Chase began distributing its dollar-backed stablecoin on Base, Coinbase’s Ethereum layer-2 network, in November 2025.
Cash App
Cash App will be integrating USDC stablecoin payments via Solana from early 2026, a move that could bring millions more users into the on-chain economy.
This article was written by Rhotic Media’s Darren Beach.