Stablecoins become core market plumbing in Moody’s 2026 outlook

Overview

Moody’s has noted a significant evolution in the role of stablecoins and tokenized deposits, characterizing them as institutional “digital cash.” This development is underscored by a substantial on-chain settlement volume reaching trillions, alongside billions invested in related infrastructure.

The Evolution of Stablecoins

According to Moody’s, stablecoins are becoming increasingly integral to the financial landscape. They are being recognized not just as a means of exchange but as a foundational element of market infrastructure. The term “digital cash” reflects their growing importance in facilitating transactions and settlements within the institutional framework.

The rise of stablecoins is accompanied by impressive on-chain settlement volumes, indicating a shift in how transactions are conducted in the digital economy. The trillions in settlement volume suggest that stablecoins are becoming a preferred method for transferring value, particularly among institutions looking for efficiency and security in their transactions.

Infrastructure Investment

In addition to the increasing use of stablecoins, Moody’s has highlighted that billions of dollars are being invested in the infrastructure that supports these digital assets. This investment is critical for enhancing the reliability and scalability of stablecoin transactions. As institutions adopt stablecoins more widely, the demand for robust infrastructure to support these transactions is expected to grow.

The investment in infrastructure is not just about maintaining current operations; it also signals a commitment to the future of digital finance. By building out the necessary systems and technologies, institutions are positioning themselves to capitalize on the benefits that stablecoins can offer, further entrenching them in the financial ecosystem.

From author

The insights provided by Moody’s underscore a pivotal moment in the evolution of digital finance. The characterization of stablecoins as “digital cash” reflects a broader acceptance of these assets within institutional circles. This acceptance is likely to drive further innovation and investment in the space, shaping the future of financial transactions.

The substantial on-chain settlement volumes indicate a shift in transaction methodologies, moving away from traditional fiat systems. As stablecoins gain traction, their role in facilitating faster, more secure transactions will likely become even more pronounced. The billions being funneled into infrastructure development highlight the recognition of stablecoins as a long-term fixture in the financial landscape.

Impact on the crypto market

• The recognition of stablecoins as “digital cash” may lead to increased adoption among institutions.
• Significant on-chain settlement volumes could enhance liquidity and efficiency in the market.
• Infrastructure investments will likely improve transaction reliability and scalability.
• The growing role of stablecoins may influence regulatory discussions surrounding digital assets.
• Enhanced institutional confidence in stablecoins could attract more participants to the crypto market.
• The evolution of stablecoins may drive innovation in financial products and services.