BlackRock 2026 Outlook: Ethereum as Premier Stablecoin Settlement Layer

Following 2025's regulatory clarity and institutional momentum, BlackRock's Global Outlook envisions stablecoins as mainstream payment bridges, with Ethereum solidifying as the dominant settlement layer for a $298 billion digital dollar market, driven by security, liquidity, and tokenized asset growth.

BlackRock's 2026 Global Outlook describes stablecoins evolving from trading tools to bridges between traditional finance and digital liquidity, quoting Samara Cohen, the firm’s global head of market development: "no longer niche."

Building on the GENIUS Act's federal framework for payment stablecoins, with phased implementation through 2026–27, the sector has seen robust growth. Stablecoin supply hit $298 billion by January 5, 2026, fueling on-chain dollar liquidity. Visa's December 2025 USDC settlement launch in the US—initially on Solana—demonstrates faster, resilient payments, including non-business days.

Ethereum excels in settlement by decoupling execution from finality, especially via rollups. It hosts $12.5 billion in tokenized real-world assets as of January 5, 2026, holding 65% market share (RWA.xyz). BlackRock's BUIDL tokenized money-market fund launched on Ethereum before multi-chain expansion, while JPMorgan's Ethereum-based fund now accepts USDC post-GENIUS Act.

Challenges include issuer transparency, such as S&P Global's November 2025 downgrade of Tether’s reserves, and multi-chain fragmentation despite efforts like Circle's USDC portability. Ethereum's ecosystem cements its role as tokenized finance's foundation.

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Despite market volatility erasing most yearly gains, 2025 marked cryptocurrency's deeper integration into traditional finance through regulatory clarity and stablecoin adoption. Banks and fintech firms expanded offerings, viewing crypto as infrastructure rather than speculation. This evolution highlighted a move from hype to practical execution.

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In 2025, cryptocurrencies shifted from speculative assets to essential financial infrastructure, marked by regulatory frameworks, institutional adoption, and technological upgrades. Governments and banks integrated Bitcoin and stablecoins into official systems, while hacks and memecoin booms highlighted ongoing challenges. This transformation redefined crypto's role in global finance.

Payments using crypto-linked cards have grown rapidly, surpassing peer-to-peer stablecoin transfers as the primary driver of on-chain activity. According to a report by blockchain analytics firm Artemis, monthly volumes rose from $100 million to over $1.5 billion in 2025, with total annual payments hitting $18 billion. This expansion highlights the increasing integration of stablecoins into everyday spending.

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Building on 2025's regulatory milestones like stablecoin legislation and bank charters for crypto firms, a TD Cowen report identifies 2026 as a critical opportunity for deeper cryptocurrency integration under President Trump's second term. Aligned regulators, deregulation, and market momentum could enable tokenized assets and clearer rules, but swift action is needed to cement gains.

 

 

 

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