Stablecoins and other forms of tokenized cash could grow to $3.6 trillion by 2030, according to a fresh report released by financial services giant BNY.
The financial services giant said Monday that stablecoins alone could reach $1.5 trillion in market cap by the end of the decade, with tokenized deposits and money market funds contributing the rest.
These instruments, collectively referred to as digital cash equivalents, were seen as tools to unlock faster settlement, reduce counterparty risk and improve collateral mobility across markets.
The report highlighted that tokenized assets such as U.S. Treasuries and bank deposits could help institutions optimize collateral management and streamline reporting processes. For example, a pension fund might one day use a tokenized MMF to post margin for a derivatives contract almost instantaneously, a scenario BNY says could become more common as systems evolve.
Regulation remains a key enabler, the report noted. The bank pointed to the EU’s MiCA legislation and ongoing policy work in the U.S. and Asia-Pacific as signs that the regulatory environment was maturing in ways that could support both innovation and market stability.
“We stand at a powerful inflection point that may fundamentally transform how global capital markets function and how its participants transact,” said Carolyn Weinberg, BNY’s chief product and innovation officer.
She envisioned a future where blockchain doesn’t replace the traditional rails but work in tandem. “The combination of traditional and digital has the potential to be a powerful unlock for our clients and the world,” she added.