BlackRock: Stablecoins Are a 'Mega Force' in Finance
BlackRock has released a commentary on the potential of stablecoins following the passage of the GENIUS Act. The asset manager believes that these dollar-pegged coins are key to the future of finance.
Stablecoins to Significantly Impact Global Finance
In a note to clients, BlackRock described stablecoins as one of five 'mega forces' set to shape future returns. The firm noted the GENIUS Act has solidified the role of these tokens in global finance, reinforcing the case for Bitcoin.
The GENIUS Act, recently signed into law, provides regulatory guidance for stablecoin issuers, mandating 1:1 backing with liquid assets like the dollar or short-term treasuries. BlackRock suggests this could support Treasury demand, though it's unlikely to significantly affect yields.
BlackRock also mentioned that stablecoins could boost dollar dominance, especially in emerging markets, and concluded that these coins are a core part of finance’s future.
Treasury Secretary Scott Bessent has made similar arguments, projecting the stablecoin market could reach $3.7 trillion by the end of the decade, a forecast bolstered by the GENIUS Act.
Currently, stablecoins have a market cap of $273 billion, led by Tether’s USDT and Circle’s USDC, accounting for about 7% of the total crypto market cap.
Growing Interest in Stablecoins
Google Trends data indicates that interest in stablecoins has spiked since the GENIUS Act was passed, reaching all-time highs. This suggests increased adoption by retail investors due to the new regulatory clarity.
Traditional finance giants are also showing interest. Interactive Brokers is exploring issuing its own stablecoin for 24/7 brokerage account funding. Additionally, JPMorgan has announced the JPMD coin, a dollar-backed deposit token for its customers.
Asset manager Bitwise has stated that “stablecoins are going parabolic,” citing the surge in market capitalization and exponential growth in transactions since 2020.
Codeum helps ensure the security of the blockchain industry through its smart contract audit services. We also provide KYC verification, custom smart contract and DApp development, and tokenomics and security consultation to enhance trust and transparency in the crypto space. Our partnerships with launchpads and crypto agencies further support secure and reliable blockchain solutions.