Traditional banks, when facing on-chain settlement, are most concerned about three things: Will regulators come knocking? Will the funds arrive on time? Who will guarantee customer assets?

Protocols like $XPL stablecoin settlement are not in opposition to banks—more like a "last mile" supplement in scenarios such as cross-border small payments, real-time corporate clearing, and supply chain finance. But to truly get banks on board, solid answers are needed in three key areas.

**How to pass the legal hurdle?**
Banks fear "dirty money with unknown sources." The solution is to build an auditable KYC/AML interface that maps on-chain transaction records to off-chain identity information. Using verifiable credentials (VC) and multi-party authorization, this approach allows regulators to trace fund flows without exposing all customer privacy. Banks want to be able to "find the person" if something goes wrong, not just access user databases.

**Can the technology withstand the load?**
Banks' core systems often run for decades, and integrating new technology risks frequent outages. Therefore, providing enterprise-grade APIs, batch settlement tools, and reconciliation plugins is essential to embed protocols directly into existing bank settlement or custody systems. For large transactions, additional safeguards like multi-signature custody, time locks, and insurance pools can reduce liquidity and bridging risks to acceptable levels.

**How to share profits commercially?**
There are two main approaches: First, offer white-label settlement services, allowing banks to package your technology as their own product; second, co-develop new offerings such as on-chain factoring or instant cross-border remittances. The former earns technical service fees, while the latter shares in incremental revenue from new business.

Ultimately, banks are not unwilling to adopt blockchain; they need an interface that is both compliant and user-friendly.