TLDR

BlackRock identified stablecoins as one of five major forces shaping the future of financial returns.
The GENIUS Act became the first major U.S. crypto law and mandates 1:1 backing for stablecoins with liquid assets.
BlackRock stated that stablecoins could support U.S. Treasury demand without significantly impacting yields.
The firm emphasized stablecoins’ role in strengthening dollar dominance, particularly in emerging markets.
Tether’s USDT and Circle’s USDC lead the stablecoin market with a combined capitalization of over $273 billion.

Stablecoins have entered a new era of legitimacy following the recent signing of the GENIUS Act into U.S. law. BlackRock named these digital assets among five major forces that will shape long-term financial returns. The firm emphasized their growing influence across global finance, citing their integration into regulatory frameworks and increasing institutional interest.

The asset manager released a note highlighting the GENIUS Act’s role in reinforcing stablecoins’ importance to financial infrastructure. The law requires issuers to fully back stablecoins with liquid assets like dollars or short-term treasuries. This regulation strengthens market trust and secures stablecoins’ place in the evolving monetary ecosystem.

BlackRock believes the bill may increase demand for U.S. Treasuries without significantly altering yields. At the same time, it views stablecoins as a strategic asset. The firm expects them to support U.S. dollar dominance in global transactions, especially in emerging markets.

STABLECOINS ARE HERE TO STAY: BLACKROCK

BlackRock says new U.S. legislation, especially the Genius Act, is cementing stablecoins’ role in global finance and reinforcing the long-term case for bitcoin.

In a note, the firm calls stablecoins one of five “mega forces” shaping…

— *Walter Bloomberg (@DeItaone) July 29, 2025

USDT and USDC Continue to Lead the Market

Tether’s USDT and Circle’s USDC continue to dominate the stablecoins market with a combined capitalization exceeding $273 billion. These two assets represent about 7% of the total cryptocurrency market, according to CoinMarketCap. Their consistent usage has driven liquidity and reliability in the digital asset space.

Tether’s USDT remains the largest stablecoin and is widely used across crypto trading platforms and payment networks. Circle’s USDC, while smaller, has gained traction in regulated markets and institutional portfolios. Both stablecoins meet the GENIUS Act’s backing requirements, improving investor confidence.

Stablecoins offer predictable value and near-instant transactions, enabling greater efficiency for both retail and institutional use cases. With U.S. regulation now in place, adoption continues to grow. Search trends have surged since the law passed, suggesting increasing interest among new users.

Stablecoins Gain Institutional and Government Backing

Major financial players have begun embracing stablecoins as essential tools for innovation and efficiency. BlackRock, along with Bitwise and Interactive Brokers, sees them as core to the future of finance. Bitwise described their growth trajectory as “parabolic,” referencing the expanding transaction volume since 2020.

Interactive Brokers is exploring launching its stablecoin to enable 24/7 account funding. This move reflects broader industry interest in using stablecoins for continuous financial operations. Additionally, JPMorgan, Citi, and Bank of America are reportedly exploring their own tokenized deposit solutions.

JPMorgan has already introduced JPMD Coin for internal dollar-backed settlements. These initiatives demonstrate stablecoins’ utility in real-world banking and settlement operations. With regulatory support secured, financial giants are accelerating their involvement in stablecoin ecosystems.

The post BlackRock Names Stablecoins a Mega Force in Future Global Finance appeared first on CoinCentral.

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Filed under: News - @ July 29, 2025 4:28 pm