Welcome to The Buzz, where we dive into the latest in banking and technology. In this episode, FV Bank CEO Miles Paschini talks about how his bank is using new technologies like stablecoins to bridge the gap between traditional finance and the digital world.

FV Bank, short for FinTech Ventures Bank, was built differently from the start. Most fintech startups begin with a cool app or platform, then look for partnerships with banks. FV Bank flipped that approach—starting with a full banking license so it could develop fintech products within a regulated environment. Their goal? Combine traditional banking services with cutting-edge digital asset technology.

Paschini has been working in payments and crypto since the early days. Back in 2013, he helped launch one of the first crypto-linked debit cards, letting users spend Bitcoin via Visa. This experience helped shape FV Bank’s mission: to be a bridge between traditional finance (TradFi) and blockchain-based financial tools.

The Sweet Spot: TradFi Meets Blockchain

Paschini often describes FV Bank’s strategy with a simple Venn diagram—one circle for traditional finance, another for emerging tech like blockchain. The overlap is where FV Bank operates: helping customers use both systems seamlessly.

For example, when you open an account at FV Bank, you don’t just get a routing and account number—you also get blockchain wallet addresses. These can be on Ethereum (ERC-20), Tron, Solana, or Polygon networks. That means customers can hold and move stablecoins just as easily as they handle traditional dollars.

Investing in Tech Before It Hits the Headlines

FV Bank started integrating stablecoins like USDC over three years ago—long before they became a hot topic. The bank saw stablecoins not just as a trendy asset, but as a new kind of payment rail—faster and cheaper than SWIFT or FedWire.

Customers use stablecoins in different ways. Some receive stablecoins and convert them to dollars to pay invoices or suppliers. Others start with dollars and use them to send stablecoins globally. Either way, the value moves fast and efficiently, without waiting days for international wires to clear.

Real-Time Payments and Better Compliance

One standout feature FV Bank offers is virtual account identifiers (VAIs). Think of VAIs like custom tags for each customer in a large marketplace. If you’re running a platform with thousands of users (like Etsy or a crypto exchange), VAIs help you track who’s sending or receiving money—whether it’s in dollars or stablecoins.

These virtual accounts help companies reconcile payments automatically and improve compliance by letting banks know who each customer is (also called “KYC” or Know Your Customer). This is increasingly important as regulations require banks to understand not just their own clients, but also their clients’ customers.

FV Bank took this a step further by linking these virtual accounts to blockchain wallet addresses. That means businesses can now track incoming payments whether they’re traditional wire transfers or stablecoin deposits—all under one system.

Billions in Volume and Growing Fast

Stablecoin transactions are now the fastest-growing part of FV Bank’s business. They process billions of dollars each month using this method. At first, most customers only used stablecoins to receive payments and convert them back to fiat. Now, more clients are also using stablecoins to make payments, creating a balanced flow of money going both in and out.

Use cases are expanding too—from cryptocurrency exchanges and marketplaces to businesses in countries with unstable currencies that use stablecoins to protect value. More companies are becoming comfortable receiving and sending stablecoins because they offer speed, lower fees, and reliability.

Innovation Ahead: Tokenized Assets and Crypto Lending

Looking forward, FV Bank sees big potential in tokenized financial products like money market funds. They already support BlackRock’s BUIDL tokenized fund through Securitize. With tokenization, companies can move money into interest-bearing accounts instantly—no more waiting for wires to clear or cut-off times.

They’re also working on secure lending products where customers can use digital assets like Bitcoin or Ethereum as collateral for loans. This would let companies access cash without selling their crypto holdings—similar to borrowing against real estate.

As regulations become clearer with new laws like the Clarity Act and the Gensler Innovation and National Uniformity for Stablecoins (GENIUS) Act, Paschini expects more businesses to invest in digital assets and need these kinds of services.

Advice for Banks Entering the Stablecoin Space

For banks thinking about offering stablecoin services, Paschini offers a word of caution: it may look simple on the surface, but it’s complex under the hood. Supporting digital assets requires strong compliance systems, especially for anti-money laundering (AML) and counter-terrorism financing (CTF).

FV Bank has spent years building these controls—and it’s what sets them apart. Their advice? Take compliance seriously from day one if you want to operate responsibly in the digital asset world.

Stablecoins are here to stay, but success depends on trust, compliance, and offering real value—not just flashy headlines. As more businesses adopt these tools for faster payments and better global access, banks that embrace innovation responsibly will lead the next wave of financial services.