Stablecoins and other forms of tokenized cash could grow to $3.6 trillion by 2030, according to a new report released by financial services giant BNY.
The financial services giant said on Monday that stablecoins alone could reach $1.5 trillion in market capitalization by the end of the decade, with tokenized deposits and money market funds contributing the rest.
These instruments, collectively called digital cash equivalents, were seen as tools to unlock faster settlement, reduce counterparty risk, and improve collateral mobility between markets.
The report highlighted that tokenized assets, such as US Treasuries and bank deposits, could help institutions streamline collateral management and streamline reporting processes. For example, a pension fund could one day use a tokenized MMF to record margin for a derivatives contract almost instantly, a scenario that BNY says could become more common as systems evolve.
Regulation remains a key enabler, the report notes. The bank pointed to the EU’s MiCA legislation and ongoing policy work in the US and Asia-Pacific as signs that the regulatory environment was maturing in a way that could support both innovation and market stability.
“We are at a powerful inflection point that can fundamentally transform how global capital markets operate and how their participants transact,” said Carolyn Weinberg, chief product and innovation officer at BNY.
She envisioned a future where blockchain would not replace traditional rails but work alongside them. “The combination of traditional and digital has the potential to be a powerful unlock for our customers and the world,” he added.
