The trend is being driven by new legislation, especially the GENIUS Act, and rising adoption, positioning stablecoins as a long-term force in digital finance.\n<\/p>\n
Stablecoins could help fuel the U.S. dollar\u2019s dominance, especially as new regulations \u2014 namely the GENIUS Act in the United States \u2014 take effect, BlackRock said in a new report<\/a>.<\/p>\n New legislation in the U.S. \u201ccements the role of stablecoins\u201d as a payment means, according to BlackRock, the world\u2019s largest asset manager. The firm in particular referenced the GENIUS Act<\/a>, the landmark stablecoin bill signed into law<\/a> earlier this month, which is strictly focused on stablecoins as payment tools rather than investments. The GENIUS Act restricts issuers from paying interest with so-called yield-bearing stablecoins, and limits issuance to federally regulated banks, some registered nonbanks, and state-chartered firms.<\/p>\n \u201cThis regulation could reinforce dollar dominance by enabling a tokenized U.S. dollar-based ecosystem for international payments,\u201d the report argues, a sentiment echoed by many industry commentators, as well as by U.S. legislators as they were considering GENIUS.<\/p>\n \u201cUsers in emerging markets may get easier access to the U.S. dollar over volatile local currencies. Yet in major economies, adoption may be limited by the ban on interest payments, which aims to prevent a low-friction rival that could compete with bank deposits and hurt traditional lending.\u201d<\/p>\n Stablecoins \u2014 cryptocurrencies whose value is pegged to a particular asset, most often USD \u2014 have reached a total market capitalization of over $260 billion<\/a> in 2025, up from less than $10 billion in 2020. That figure accounts for about 7% of the overall crypto market, BlackRock noted in its weekly market commentary. <\/p>\n Currently, stablecoins total market capitalization is around $266 billion, according to data from DeFiLlama. Tether\u2019s USDT dominates the stablecoin sector with a market cap of $164 billion, or around 62% of that total. <\/p>\n BlackRock\u2019s report also noted that more demand for stablecoins probably won\u2019t change short-term Treasury yields much, referencing the fact the major USD stablecoin issuers hold U.S. Treasuries as part of their reserves. The top stablecoin issuers Tether<\/a> and Circle<\/a> currently hold \u201cat least $120 billion in Treasury bills,\u201d the report notes, which makes up \u201conly 2%” of the $6 trillion total, per BlackRock\u2019s data. <\/p>\n \u201cFirst, stablecoin demand for bills is likely to be offset by money shifting from similar assets, so little net new demand,\u201d the report reads. \u201cSecond, bill issuance is set to keep surging due to the Treasury\u2019s preference to boost the funding of persistent deficits with more short-term debt.\u201d<\/p>\n A recent report from crypto research firm Messari<\/a>, however, found that large-scale stablecoin inflows are linked to a drop in long-term Treasury yields, \u201ccomparable to that of small-scale quantitative easing[.]\u201d<\/p>\n In general, BlackRock said it considers stablecoins one of five \u201cmega forces\u201d driving investment returns \u2014 the firm defines<\/a> mega forces as \u201cbig, structural changes that affect investing now, and far in the future.\u201d <\/p>\n Overall, BlackRock believes that new regulations and government support for digital assets will lead to greater adoption. However, the firm notes that it’s unclear how stablecoins will compete with other digital assets as they remain a \u201crelatively small part\u201d of the larger crypto universe.<\/p>\n BlackRock\u2019s report was released the same day that crypto asset manager Bitwise posted<\/a> on X: \u201cStablecoins are going parabolic.\u201d Meanwhile, a recent report from crypto bank Sygnum echoed similar views that stablecoins could strengthen the U.S. dollar\u2019s global position<\/a>. <\/p>\n Sygnum\u2019s findings highlight that, while the dollar remains central to global markets, its long-term dominance faces increasing challenges. In response, the U.S. government has been turning to stablecoins to counteract \u201cde-dollarization\u201d trends, particularly by providing emerging markets with easier access to dollar-backed digital payments.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" The trend is being driven by new legislation, especially the GENIUS Act, and rising adoption, positioning stablecoins as a long-term force in digital finance. Stablecoins could help fuel the U.S. dollar\u2019s dominance, especially as new regulations \u2014 namely the GENIUS Act in the United States \u2014 take effect, BlackRock said in a new report. New […]<\/p>\n","protected":false},"author":2,"featured_media":400224,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-400221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/400221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=400221"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/400221\/revisions"}],"predecessor-version":[{"id":400226,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/400221\/revisions\/400226"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/400224"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=400221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=400221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=400221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Low Impact on Treasury Yields<\/h2>\n