Unlike cryptocurrencies such as bitcoin, stablecoins are designed to maintain a fixed price tied to a fiat currency, typically the U.S. dollar and backed by cash and short-term U.S. Treasury bonds. Initially used primarily by crypto traders on exchanges, they are increasingly finding uses in payments, cross-border transfers and securities settlement.
Institutions see significant room for growth. Standard Chartered predicts that the stablecoin market could grow from around $300 billion today to $2 trillion by the end of 2028, while Citigroup estimates it could reach $4 trillion by 2030 in its base case scenario. Circle’s USDC is the second largest stablecoin with a market capitalization of over $73 billion.
“As digital assets become increasingly integrated into financial markets, institutions need infrastructure that operates seamlessly across traditional and blockchain-based systems,” said Carolyn Weinberg, chief product and innovation officer at BNY.
