BlackRock Declares Stablecoins the ’Future of Finance’ Under Clear US Regulations
Wall Street's trillion-dollar titan just crowned stablecoins as the payment rails of tomorrow—but only if regulators play ball.
BlackRock's latest report throws gasoline on the crypto revolution: "Clear US rules transform stablecoins from crypto curiosities to mainstream payment infrastructure," their analysts write. The kicker? This comes as Hong Kong prepares its own stablecoin framework for 2025.
Key details buried in the fine print:
- Regulatory certainty could mint stablecoins as the Visa/Mastercard killers
- USD-pegged tokens now processing $7T+ annually—already dwarfing some national payment systems
- BlackRock quietly holds $15B in crypto assets despite CEO's past skepticism
The irony? The same institution that once called Bitcoin "an index of money laundering" now bets big on its regulated cousins. Maybe blockchain does change everything—even Wall Street's mind.
Officially a payment method
BlackRock detailed how the law rewrites the rulebook. Legislation now classifies stablecoins as a payment method, bans interest on balances, and confines issuance to federally regulated banks, some registered nonbanks, and state-chartered firms.
The report assessed that this structure can strengthen the dollar’s role by enabling a tokenized dollar payment network for cross-border use. At the same time, the interest ban may curb take-up in major economies that already offer attractive bank deposits.
The note also drills into reserves. Issuers would hold mostly repos, money market funds, and US Treasury bills with 93 days or less to maturity. BlackRock pointed to Tether and Circle as the largest buyers, with at least $120 billion in T-bills, about 2% of the roughly $6 trillion in bills outstanding.
Even if demand grows, the institute expects only a small effect on bill yields because money WOULD largely rotate from similar assets, and the Treasury plans to keep expanding bill supply.
Fight for dominance
The institute places the US shift within a global contest. Hong Kong is, while Europe is studying a digital euro with guardrails to prevent harm to banks.
If other jurisdictions allow interest-bearing stablecoins or push central bank alternatives, the dollar’s role in trade finance could face new competition. However, US officials could address this by allowing interest in the future.
On market plumbing, BlackRock expects limited effects on short-term Treasury yields from stablecoin growth, while it keeps Bitcoin separate as a distinct return driver.
