New BlackRock report exposes a historic shift in crypto that leaves only one blockchain controlling the settlement layer
Stablecoins was once a crypto comfort, a option to park {dollars} between trades with out touching fiat. However, the trade has matured sufficient that BlackRock now treats them as foundational rails for the market.
In its 2026 Global Outlook, the BlackRock Investment Institute argued that stablecoins are widening past exchanges and changing into built-in into mainstream cost methods. It additionally mentioned they might broaden in cross-border transfers and day-to-day use in rising markets.
That framing issues as a result of it shifts the query buyers ask, particularly when it comes from a title as huge as BlackRock.
The level right here isn’t whether or not stablecoins are good for crypto. The query is whether or not they’re on observe to turn into a settlement rail that sits beside, and generally inside, conventional finance.
If they do, which blockchains will find yourself performing like the base layer for closing settlement, collateral, and tokenized money?
BlackRock places the stakes bluntly. “Stablecoins are now not area of interest,” the report quotes Samara Cohen, BlackRock’s world head of market improvement.
They’re “changing into the bridge between conventional finance and digital liquidity.”
From buying and selling chip to funds rail
Stablecoins started thriving on crypto volatility. Markets swing, banks shut on weekends, and exchanges depend on a patchwork of fiat rails for redemptions.
Dollar-pegged tokens solved that operational drawback by giving merchants a 24/7 unit of account and settlement asset.
BlackRock’s emphasis is that stablecoins have now outgrown that area of interest. The agency mentioned integration into mainstream cost methods and cross-border funds is a pure subsequent step, particularly the place latency, charges, and correspondent banking friction stay stubbornly high.
One motive the timing feels proper is regulatory. In the US, the GENIUS Act was signed into law on July 18, 2025, creating a federal framework for cost stablecoins, together with reserve and disclosure necessities.
That form of authorized readability doesn’t assure mass adoption. But it adjustments the threat calculus for banks, massive retailers, and cost networks that should reply to compliance groups and regulators.
The market’s scale can also be now not theoretical. Total stablecoin worth stood round $298 billion as of Jan. 5, 2026, with USDT and USDC nonetheless dominating the stack.
BlackRock’s report, utilizing CoinGecko information by way of Nov. 27, 2025, notes stablecoins hit report highs in market cap whilst crypto costs fluctuated. It highlights their position as the system’s main supply of “greenback liquidity and on-chain stability.”
That mixture of authorized recognition and sheer measurement is why stablecoins have began to point out up in locations they by no means used to, like the again workplace of worldwide funds.
Visa supplied a concrete instance in December 2025. The firm mentioned it had launched USDC settlement in the US, permitting issuer and acquirer companions to settle with Visa in Circle’s greenback stablecoin.
Visa mentioned preliminary banking individuals settled over Solana. It framed the transfer as a option to modernize its settlement layer with sooner motion of funds, seven-day availability, and resilience throughout weekends and holidays.
Stablecoins are shifting into the a part of finance that’s normally invisible till it breaks: settlement.
Settlement is the place the worth accrues
If stablecoins are actually successfully digital {dollars}, the subsequent query is the place these {dollars} stay as the system scales.
As stablecoins transfer towards extra advanced makes use of, corresponding to collateral, treasury administration, tokenized money-market funds, and cross-border netting, the base layer issues greater than advertising. That layer wants predictable finality, deep liquidity, strong tooling, and a governance and safety mannequin establishments can belief for many years, not simply a cycle.
This is the place Ethereum might step in.
Ethereum’s worth proposition in 2026 isn’t that it’s the most cost-effective chain for sending a stablecoin. Plenty of networks compete there, and Visa’s Solana pilot is a reminder that high-throughput chains have a seat at the desk.
The case for Ethereum is that it has turn into the anchor layer for an ecosystem that treats execution and settlement as separate capabilities.
Ethereum’s personal documentation makes that express in the context of rollups, the place Ethereum acts as the settlement layer that anchors safety and gives goal finality if disputes happen on one other chain.
So when customers transfer quick and low-cost on L2s, the base chain nonetheless performs referee. The extra worthwhile the exercise being settled, the extra worthwhile the referee position turns into.
Tokenization is quietly steering establishments towards Ethereum
BlackRock’s stablecoin part can also be a tokenization story. The report describes stablecoins as a “modest however significant step towards a tokenized monetary system,” the place digital {dollars} coexist with, and generally reshape, conventional channels of intermediation and coverage transmission.
Tokenization turns that summary thought into a balance-sheet actuality. It means issuing a declare on a real-world asset, corresponding to a Treasury invoice fund, on a blockchain.
Stablecoins then function the money leg for subscriptions, redemptions, and secondary-market buying and selling.
On that entrance, Ethereum continues to be the heart of gravity. RWA.xyz exhibits Ethereum internet hosting about $12.5 billion in tokenized real-world property, roughly a 65% market share as of Jan. 5, 2026.
BlackRock itself helped construct that gravitational pull. Its tokenized money-market fund, BUIDL, debuted on Ethereum and later expanded to a number of chains, together with Solana and a number of other Ethereum L2s, as tokenized Treasuries turned one of the clearest real-world use instances for on-chain finance.
Even on a multi-chain footprint, the institutional sample is telling: begin the place liquidity, custody integrations, and sensible contract requirements are most mature, then lengthen outward as distribution channels develop.
JPMorgan has been shifting in the identical route. The financial institution launched a tokenized money-market fund with shares represented by digital tokens on Ethereum.
It accepted subscriptions in money or USDC and tied the push partly to the stablecoin regulatory shift that adopted the GENIUS Act.
This suggests stablecoins don’t simply want a quick community for funds. They additionally want a credible settlement cloth for tokenized collateral, yield-bearing money equivalents, and institutional-grade finance.
Ethereum has turn into the default reply to that want, not as a result of it wins each benchmark, however as a result of it has turn into the settlement courtroom the place the most useful instances are heard.
The wager isn’t risk-free
BlackRock’s outlook consists of warning embedded in the alternative. In rising markets, it notes stablecoins might broaden greenback entry whereas difficult financial management if home foreign money use declines.
That’s a political financial system drawback, not a tech drawback. It’s additionally the sort that can set off restrictive coverage responses in precisely the locations the place stablecoins have product-market match.
There are additionally issuer dangers. Stablecoins aren’t all the identical, and market construction can activate belief.
S&P Global Ratings downgraded its evaluation of Tether’s reserves in November 2025, citing considerations about restricted transparency. It was a reminder that the stability of the system can hinge on what sits behind the peg.
Ethereum additionally isn’t assured to be the only settlement layer that issues. Visa’s USDC settlement work exhibits massive gamers are keen to route stablecoin settlement over different chains when it suits their operational wants.
Circle positions USDC as natively supported throughout dozens of networks, a technique that makes stablecoin liquidity transportable and reduces dependence on any single chain.
But portability cuts each methods. As stablecoins unfold, the premium shifts to layers that can present credible settlement, integration with tokenized property, and a safety mannequin sturdy sufficient to influence establishments they’ll park actual money and actual collateral on-chain with out waking as much as a governance shock.
That’s why ETH is a possible wager on the settlement customary for tokenized {dollars}. If stablecoins have gotten what BlackRock says they’re, a bridge between conventional finance and digital liquidity, the bridge nonetheless wants bedrock.
In the present structure of the crypto market, Ethereum is the bedrock most establishments preserve returning to.
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