Stablecoins Surpass $210 Billion: Here’s How That Stacks Against Your Bank and Brokerage

Digital dollars hit escape velocity—traditional finance watches from the sidelines.

The $210 billion milestone isn't just a number—it's a declaration. Stablecoins now hold more value than many regional banks and challenge brokerage liquidity pools. This isn't speculation; it's settlement.

24/7 markets don't wait for banking hours.

While traditional finance still runs on legacy systems and business-day settlements, stablecoins operate at internet speed. No wire delays, no holiday closures, no excuses. The infrastructure isn't coming—it's already here.

Bankers call it disruption—users call it freedom.

The cynical take? Banks still charge for international transfers that take three days while stablecoins move millions in seconds for pennies. Some call that innovation—others call it embarrassment.

Welcome to the new reserve currency. Your move, Wall Street.

Image source: Getty Images.

They initially gained traction as a bridge between traditional money and cryptocurrencies. But stablecoins are no longer solely the purview of the cryptocurrency world. Banks, retailers, and other entities are all exploring ways to integrate stablecoins into their operations.

Read on to find out how stablecoin balances compare to your bank and brokerage, and what it all means for investors.

Comparing stablecoins, banks, and brokerages

The combined volume of all stablecoins in circulation is more than $210 billion per recent research from The Motley Fool. That's more than several brokerages have in their customer payables accounts.

The research shows there's about $150 billion in(USDT 0.00%), while(CRCL 17.86%) has issued almost $63 billion in(USDC -0.00%). In contrast,(HOOD 0.23%) holds a fraction of that in liquid assets with just over $7 billion payable to users.(MS 1.53%)holds more than $200 billion in customer and other payables.

But liquid assets are only one part of the picture. After all, Robinhood's latest quarterly results show it has $279 billion in total platform assets. Morgan Stanley says it has more than $1.7 trillion in assets under management.

And while there's a lot of speculation about stablecoins' potential to disrupt banks, the Motley Fool research shows bank deposits still blow stablecoins out of the water.(JPM 1.65%) alone has $2.1 trillion in total deposits, while(BAC 1.20%) and(WFC 1.01%) have another $3.3 trillion between them.

It's certainly true that stablecoin deposits have grown dramatically. And there's a good chance that new legislation and changing attitudes will boost their usage even further. However, right now, $210 billion in the stablecoin industry is only a fraction of what U.S. consumers have deposited in banks and brokerages.

Moreover, in terms of payment processing -- one of the promising uses of stablecoins -- the transaction volume remains low. McKinsey points out that stablecoins only account for about $30 million in transactions each day, which is less than 1% of global money flows. Even so, the report also points out that if stablecoin transaction volumes continue to grow at the same rate, they will overtake existing systems such as the Swift network for international bank transfers within a decade.

How banks and brokerages are approaching stablecoins

Given that banks and brokerage firms still dominate, the question is not how total deposits compare, but rather how these financial giants plan to integrate stablecoins into their operations.

Several big players in banking, including JPMorgan, Bank of America, and(C 1.65%), mentioned stablecoin projects in recent earnings calls. Top banks may also wind up working to issue a joint stablecoin.

JPMorgan and Citi have both launched deposit tokens, which are blockchain-based tokens that represent money held with the banks. JPMorgan also announced a partnership with(COIN 2.73%) in July. This will make it easier for customers to use a credit card to fund their crypto accounts and redeem Chase Ultimate Rewards Points in crypto rewards.

Major brokerages such as(SCHW 1.77%) and Fidelity are reported to be testing out stablecoin possibilities, but it is early days. Robinhood is part of a consortium of various digital asset and fintech firms that have already launched the(USDG -0.00%) in Europe. It is also developing its own blockchain.

Investing in the stablecoin industry

It looks like stablecoins are here to stay, though exactly what shape they will take is still unclear. If you're looking to invest in stablecoins, here are some approaches to consider.

• Stablecoin issuers: Circle stock initially soared in its initial public offering (IPO) in June reflecting optimism about both stablecoin growth and USDC's role in the industry. However, that incredible growth has since faltered, and some still see it as overpriced.
• Cryptocurrency ecosystems: Many stablecoins are being built on existing smart-contract blockchains, such as Ethereum (ETH 1.97%) and Solana (SOL 6.10%).
• Banks and brokerages that are leading the stablecoin charge: This article shows the different approaches key players are taking toward stablecoins. Blockchain and stablecoins shouldn't be the sole factors in your evaluation of financial-sector stocks, but they are worth taking into account.

Bear in mind that the stablecoin market is evolving quickly, and a lot of things are unclear. For example, critics worry that there aren't enough safeguards in place to protect consumers, particularly if any popular stablecoins lose their peg. Stablecoins may also be threatened if many countries choose to develop their own central bank digital currencies (CBDCs).

Stablecoins mark a convergence of a number of industries and interests. As with any cryptocurrency or high-risk investment, make sure your stablecoin investments are part of a diversified portfolio and fit with your overall investment strategy. It's easy to get caught up in exciting new trends and lose sight of the bigger picture.