Moody’s Highlights Growing Role of Stablecoins and Tokenized Deposits in Financial Markets
Stablecoins are evolving from crypto-native instruments to essential components of institutional market infrastructure, according to Moody’s 2026 digital economy outlook. The report noted that stablecoins processed roughly $9 trillion in onchain settlement volume in 2025, an 87% increase from the previous year.
Fiat-backed stablecoins and tokenized deposits are increasingly functioning as “digital cash”, facilitating liquidity management, collateral transfers, and cross-border settlements. They are now integrated into tokenized bonds, funds, and credit products, signaling a broader convergence between traditional finance and blockchain-based systems.
Banks, asset managers, and market infrastructure providers have been piloting blockchain settlement networks, tokenization platforms, and digital custody solutions, with $300 billion projected in infrastructure investment by 2030 to support large-scale tokenization and programmable settlement. JPM Coin and Société Générale‑Forge initiatives exemplify how deposit tokens layer digital cash functionality onto existing banking infrastructure.
Regulators are beginning to align frameworks globally, including the EU’s MiCA, US proposals, and Gulf-region digital money architectures. Moody’s cautioned that risks from smart contract bugs, cyberattacks, and cross-chain fragmentation could threaten operational reliability, emphasizing that security, governance, and interoperability are critical for stablecoins to serve as dependable settlement assets.
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