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