Financial IT caught up with Miles Paschini, Co-Founder and CEO of FV Bank, at Money20/20 USA to discuss how the bank is bringing traditional banking and digital assets together, the growing role of stablecoins in cross-border payments, and the technical and regulatory challenges facing financial institutions adopting blockchain-based solutions. Paschini also shares his plans for expanding FV Bank’s Global Managed Accounts offering.Financial IT: Could you introduce FV Bank and explain how its embedded banking model works?Miles Paschini (MP): FV Bank is a Puerto Rico-based bank specialising in financial infrastructure for fintech companies and digital platforms. We offer what we call a “headless bank account”, delivering banking services through APIs that enable platforms to embed US dollar accounts, payment cards and stablecoins directly into their own ecosystems.This allows our clients to integrate financial services into their existing products and customer experiences without having to build the underlying banking infrastructure themselves.Financial IT: How does FV Bank bridge traditional banking and digital assets, and what does this mean for your customers?MP: FV Bank has been a pioneer in bringing traditional finance and digital assets together. Around three to four years ago, we introduced a model that combined US dollar bank accounts with stablecoin wallets, enabling customers to receive stablecoins directly into their US dollar accounts and mint and send stablecoins from those accounts.Our approach is to treat stablecoins as a payment rail, combining the reliability of traditional banking infrastructure with the speed and flexibility of digital assets.We have also extended this model to payment cards, including Visa debit and prepaid cards, with stablecoins supporting the full card lifecycle. This creates a more integrated experience in which banking, digital assets and payments work together within a single infrastructure.Financial IT: Stablecoins are gaining traction in payments. What opportunities are you seeing, particularly in cross-border transactions?MP: The stablecoin market is growing rapidly, and as an early adopter, FV Bank is seeing significant demand. Today, approximately 40% of our deposits come through stablecoin transactions, and an increasing number of our customers are using stablecoins to make payments.Their utility is becoming increasingly apparent, with stablecoin transfers emerging as an alternative to traditional cross-border payment methods, including SWIFT transfers.We are also seeing opportunities to develop products that reduce or eliminate the need for pre-funded liquidity in cross-border payments and card loading, with transactions powered by stablecoins on-chain. These models can help address liquidity constraints and create more efficient payment experiences for customers.Financial IT: What are the biggest challenges financial institutions face when adopting digital assets, and how is FV Bank addressing them?MP: I see two main challenges for financial institutions looking to implement blockchain-based products, including stablecoins.The first is technical. Institutions need to build or integrate the appropriate infrastructure, alongside the compliance tools required to support digital asset transactions.The second concerns risk management and governance. Adopting digital assets requires institutions to review and adapt their compliance policies, procedures and governance frameworks to address the risks associated with these new products.Financial institutions need to consider whether their existing risk and compliance frameworks are suitable for digital assets and whether they have the technology and infrastructure to support them effectively. Addressing both areas is essential to implementing these solutions responsibly and at scale.Financial IT: What’s next for FV Bank, and how do you see your product offering evolving?MP: Our flagship product, Global Managed Accounts, is gaining significant traction. It enables us to embed banking accounts directly into third-party platforms and ecosystems, bringing financial services closer to where customers already operate.Looking ahead to 2027, we are exploring the addition of lending capabilities and digital asset custody to these accounts. Our aim is to continue expanding the functionality of Global Managed Accounts, giving our partners access to a broader range of financial services through a single integrated offering. Miles Paschini, Co-Founder and CEO of FV BankCo-Founder and CEOFV BankYes