Stablecoins Go Mainstream: 90% of Financial Institutions Now Onboard

Wall Street’s love affair with crypto just hit a new milestone—nine out of ten financial institutions are now using stablecoins, according to a bombshell report.

From fringe to fundamental

Once dismissed as a crypto curiosity, dollar-pegged tokens now underpin everything from cross-border settlements to treasury management. Even legacy banks can’t ignore the 24/7 settlement speeds and (whisper it) lower compliance costs.

The institutional domino effect

Early adopters like hedge funds paved the way, but the real shocker? Traditional asset managers now hold more USDC than some crypto-native firms. Nothing accelerates adoption like the scent of saved overhead.

Cynical take
: Nothing unites finance like a way to bypass SWIFT fees—except maybe finding new loopholes before regulators catch up.

Speed and infrastructure

The key driver isn’t cost savings. Speed topped the list of stablecoin advantages, cited by 48% of respondents, while only 30% ranked lower costs as a primary benefit. 

Respondents also emphasized revenue growth, liquidity improvements, and seamless integration into existing financial systems. Former Visa CFO Vasant Prabhu noted in the report that stablecoins are now “a strategic necessity” for enterprises trying to stay ahead of more agile, crypto-native competitors. 

Companies aren’t simply chasing efficiency, they’re positioning themselves for long-term competitiveness and revenue expansion.

Compliance issues mixed with regional dynamics 

Concerns around compliance and regulatory clarity have diminished sharply, per the report.

In 2023, 80% of firms cited regulation as a barrier; today, fewer than 20% do. The introduction of clear frameworks, such as MiCA in Europe, and the growth of regtech and chain analytics tools have transformed compliance from a burden into a growth enabler.

In fact, 9 out of 10 institutions now see regulations and industry standards as key drivers of adoption, highlighting how much the policy landscape has matured over the past two years.

Regional dynamics are also shaping adoption pathways. Latin America leads with 71% of institutions using stablecoins for cross-border payments. 

Asia is prioritizing market expansion, while North America is increasingly viewing regulation as a green light. In Europe, where MiCA sets the tone, adoption is slower but deliberate—with a strong emphasis on security.

Europe’s approach may be methodical, but the urgency is real. As digital payment standards shift, the region’s focus on infrastructure integrity and risk mitigation may serve as a competitive differentiator.

According to the report, the winners in this race will be the firms that not only adopt stablecoins but do so with enterprise-grade infrastructure built for speed, compliance, and scale.