According to the latest industry analysis released by digital asset infrastructure provider Fireblocks, as market trust in stablecoins has climbed to a historical high, financial institutions are increasing their investment in stablecoins.
Trust has broken the tipping point and institutional investment has increased significantly
Fireblocks data shows that since the fourth quarter of 2024, the average daily trading volume of stablecoins by traditional financial institutions and cryptocurrency enterprises has increased by 65% year-on-year, among which the holdings of dollar-pegged stablecoins USDT and USDC account for 82%. The report points out that this growth stems from the market’s dual recognition of the “reliability of value anchoring” and “immediality of transactions” of stablecoins. Especially in scenarios such as cross-border payments and on-chain asset clearing, the infrastructure attributes of stablecoins have become increasingly prominent.
Compliance process drives mainstream applications to land
John Smith, vice president of Fireblocks, said in a comment that the recent regulations on the stablecoin issuance mechanism by regulatory authorities in many countries (such as the draft of the Stablecoin Act in the United States) have further alleviated the concerns of institutional investors. The improvement of the compliance framework has transformed stablecoins from marginal tools into standardized financial products that can be included in the balance sheet. He mentioned that currently, more than 200 traditional financial institutions have connected to stablecoin trading through the Fireblocks platform, a threefold increase compared to the same period last year.
Market divergence intensifies, leading coins become more dominant
Despite the overall expansion of the market size, the report also points out that the stablecoin market shows a “Matthew effect” : the top five stablecoins by market capitalization account for 92% of the market share, while small and medium-sized coins are facing elimination pressure due to insufficient liquidity. Analysis suggests that institutional investors are more inclined to choose leading projects with transparent reserves and strict audits. This trend will drive further consolidation in the industry.
Looking ahead: From ‘Alternative’ to ‘Core infrastructure’
As the integration of blockchain technology with the traditional financial system deepens, Fireblocks predicts that stablecoins are expected to become one of the mainstream tools for cross-border trade settlement within the next two years, with their average daily trading volume possibly exceeding 50 billion US dollars. The large-scale entry of institutions marks the role transformation of stablecoins from “experimental assets” to “financial infrastructure”. Smith emphasized that in this process, technological security and regulatory compatibility will become the core barriers to competition in the industry.
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