What was once considered a mere convenience for cryptocurrency traders has now become the backbone of the modern financial market.
In its Global Outlook 2026, the BlackRock Investment Institute has enshrined a fundamental paradigm shift: stablecoins are no longer niche tools for parking cash between trades, but true 'fundamental binaries' for the mainstream payments system.
According to Samara Cohen, global head of market development at BlackRock, these assets are becoming 'the bridge between traditional finance and digital liquidity'.
It is no longer a question of assessing whether stablecoins are good for the crypto ecosystem, but of recognising their transformation into settlement systems (settlement rails) that operate alongside and, increasingly, within traditional finance.
The push for regulatory clarity
The catalyst for this evolution was the GENIUS Act, enacted into law in the US on 18 July 2025. This legislation established a federal framework for payment stablecoins, imposing strict reserve and transparency requirements.
This legal clarity has drastically reduced the risk for banks and large merchants, allowing stablecoins to be integrated into back-office processes.
The numbers confirm this climb: as of 5 January 2026, the total value of stablecoins reached $298 billion, with USDT and USDC dominating the scene. Even during periods of crypto price volatility, the capitalisation of stablecoins has hit all-time highs, confirming them as the main source of on-chain stability and liquidity.
From Visa to JPMorgan: Settlement Becomes Invisible
The payments industry is already adopting these technologies. In December 2025, Visa has launched settlement in USDC in the US, allowing partners to settle transactions on the Solana blockchain.
The motivation is purely operational: 24/7 availability, resilience on holidays and dramatically reduced latencies.
However, while speed is crucial for payments, security and programmability are essential for collateral and corporate treasury management.
Here tokenization of Real World Assets (RWA) comes into play. JPMorgan, for example, has launched a tokenized money fund on Ethereum, accepting subscriptions in USDC.
Ethereum: The “Court” of Final Settlement
While fast transactions can take place on various layers, the market seems to have chosen Ethereum as the layer of primary settlement. With a 65% market share in real-world tokenized assets (approximately $12.5 billion as of January 2026), Ethereum serves as the ultimate 'arbiter'.
BlackRock has fuelled this gravitational pull with its BUIDL fund. Although expanded across multiple chains such as Solana and various Layer 2s for distribution, the beating heart remains Ethereum.
The thesis is simple: institutions seek a settlement standard that offers objective purpose, deep liquidity and a proven security model. As the report points out, Ethereum has become the court where the 'most valuable cases' are heard.
Risks and Political Challenges
Despite the optimism, the path is not without obstacles. BlackRock warns that in emerging markets stablecoins could undermine local monetary control, triggering potential restrictive responses from governments.
In addition, issuer risk remains: in November 2025, S&P Global Ratings downgraded Tether's reserve rating, pointing out that the stability of the system depends entirely on the transparency of what underpins the peg.
In conclusion, if stablecoins are the bridge to the future, this bridge needs a solid foundation. In the current landscape, Ethereum represents the 'rock' that institutions keep coming back to in order to anchor global capital.
