- Stablecoins and other digital cash equivalents could reach a combined market size of $3.6 trillion by 2030.
- Stablecoins alone are projected to reach a market cap of $1.5 trillion by the end of the decade.
- Tokenized assets like U.S. Treasuries and bank deposits can improve collateral management and reporting for institutions.
- Regulatory developments such as the EU’s MiCA legislation are crucial to supporting innovation and market stability.
- Blockchain technology is expected to complement, not replace, traditional financial infrastructure.
Financial services leader BNY released a report projecting that stablecoins and other tokenized cash instruments could grow to a $3.6 trillion market by 2030. This total includes stablecoins, which could reach $1.5 trillion in market capitalization, alongside tokenized deposits and digital money market funds.
These digital cash equivalents are designed to enable faster transaction settlements, minimize counterparty risks, and enhance the mobility of collateral within financial markets. The report highlights the potential for tokenized assets, such as U.S. Treasuries and bank deposits, to help institutions streamline collateral management and optimize regulatory reporting.
As an example, the report suggests that pension funds might soon use tokenized money market funds to instantly post margin for derivatives contracts, reflecting an evolving financial system. Regulatory progress also plays a significant role in this transformation. The report points to frameworks like the European Union’s Markets in Crypto-Assets (MiCA) legislation and ongoing policy efforts in the U.S. and Asia-Pacific regions as indicators of a maturing regulatory environment.
Carolyn Weinberg, BNY’s chief product and innovation officer, stated, “We stand at a powerful inflection point that may fundamentally transform how global capital markets function and how its participants transact.” She added that blockchain technology is likely to work alongside traditional financial systems, creating new opportunities for clients and global markets through the combined use of digital and traditional infrastructure.
For more insight on this development, see the original report.
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