European banks with large corporate cash management and transaction banking operations may be increasingly exposed to disruption from digital assets, according to a new analysis by RBC Capital Markets. The report points to HSBC and Deutsche Bank as among the most vulnerable institutions, largely because corporate payments remain an important and recurring source of revenue for both groups.
The central risk is tied to cross-border transactions, a market long dominated by banks. If digital assets, especially stablecoins, begin to capture a meaningful share of corporate payment flows, lenders could face pressure not only on fee income but also on funding. As companies shift portions of their liquidity into tokenized forms, banks may see their deposit bases weaken and funding costs rise.
Cross-Border Payments Seen as the Earliest Pressure Point
RBC surveyed 18 European banks and found that 72% identified cross-border payments as the most immediate use case for digital assets. Corporate payments were also described as the application “nearest to market,” suggesting that crypto adoption may first hit business lines where banks currently earn stable, repeatable transaction revenue.
In a faster adoption scenario, RBC estimates that the most exposed banks could lose as much as 7% of revenue. HSBC and Deutsche Bank stand out because their corporate payments businesses account for 10% or more of total group revenue. BNP Paribas also has a significant corporate payments presence, although that business represents a smaller share of overall income, making the group somewhat less exposed by comparison.
Banks Acknowledge the Risk but Are Not Fully Repositioned
Despite recognizing the threat, most banks do not yet treat digital assets as a direct substitute for their existing services. RBC found that 83% of surveyed institutions do not currently see crypto replacing their core offerings. Demand indicators also remain mixed: about 67% of banks said stablecoin demand is still limited, and all respondents described the present impact on liquidity and treasury management as negligible.
That creates a notable gap between risk awareness and strategic urgency. Stablecoins may offer visible advantages in speed and cost for international transfers, but large-scale corporate adoption has yet to materialize. For now, many incumbents appear to be waiting for clearer demand signals before making more aggressive moves.
European Lenders Are Exploring Bank-Led Stablecoin Models
Some banks are beginning to respond. The report notes that Deutsche Bank, Barclays, and BNP Paribas are involved in bank-led stablecoin initiatives, reflecting an effort to adapt payment infrastructure without surrendering control of client relationships and transaction processing to crypto-native networks.
The next phase will depend heavily on timing and execution. If corporations adopt crypto payment rails faster than banks can roll out competitive alternatives, traditional payment revenues and deposit franchises may come under greater strain. If incumbent banks move quickly enough, they may still preserve their role by integrating digital asset tools into existing financial systems rather than being displaced by them.