Stablecoins. They used to be simple. Park your dollars between trades, don’t touch fiat. Easy. Now, it feels different. BlackRock, in their 2026 Global Outlook, is treating them like the rails of the financial system. Not just crypto anymore.
Expanding Into Mainstream Finance
They say stablecoins are moving beyond exchanges. Into payments, cross-border transfers, even everyday use in emerging markets. That’s big. Big because when BlackRock says it, investors start asking new questions. The real question? Are stablecoins becoming part of traditional finance? Not just trading tools anymore.
And if they are, which blockchains get the job of settling all this value? BlackRock quotes Samara Cohen saying stablecoins are “becoming the bridge between traditional finance and digital liquidity.” Makes sense. They started because crypto markets swing. Banks close weekends. Exchanges needed a patchwork of fiat rails. Dollar-pegged tokens fixed that. Traders could move 24/7.
But here’s the kicker — they’re growing up. Integrating into mainstream payments. Cross-border payments. Where fees and latency are stubbornly high. And the timing? Regulatory clarity. The GENIUS Act in 2025 gave a federal framework for stablecoins. Reserve and disclosure rules. Not a guarantee of adoption. But it changes the risk for banks and big merchants.
And the numbers? Not small. Total stablecoins at $298 billion by January 2026. USDT and USDC still dominate. Even when crypto prices wobble, market cap hits records. Dollar liquidity. On-chain stability. That’s where the value is.
Visa jumped in December 2025. USDC settlements in the U.S. Partners settling with Circle’s stablecoin. Some over Solana. Seven-day settlement. Resilient over weekends. Faster. Modern.
Ethereum as the Settlement Anchor
Now let’s talk settlement. The invisible engine. Where value accrues. If stablecoins are digital dollars, they need a home. And as they’re used for collateral, treasury management, tokenized money-market funds, cross-border netting, the “home” matters. Predictable finality. Deep liquidity. Good governance. Security that lasts decades.
Ethereum? That’s the current bedrock. Not always the cheapest, but an anchor. Rollups move fast. Ethereum settles disputes. The referee. The more valuable the transaction, the more the referee matters.
Tokenization is pushing institutions toward Ethereum too. Tokenized Treasuries. Money-market funds. Real-world assets. RWA.xyz says $12.5B on Ethereum. About 65% market share. BlackRock, JPMorgan, and others are using Ethereum for funds with USDC or cash. Start where liquidity and tools are strongest. Then branch out.
Risks? Of course. Emerging markets. Dollar access vs monetary control. Stablecoin issuer risk. Tether’s reserves were downgraded. Ethereum isn’t the only chain. Visa shows players may route over multiple chains. Circle supports dozens of networks. Portability is good, but the premium is on chains you can trust with real cash and collateral.
Bottom Line
ETH looks like the settlement bedrock. If stablecoins are bridging digital and traditional finance, Ethereum is the bridge’s foundation. Institutions keep coming back.
