Stablecoins as Core Market Infrastructure: Moody’s 2026 Perspective

Stablecoins, once confined to the crypto-native ecosystem, are rapidly evolving into mainstream financial instruments. According to Moody’s 2026 outlook, they are set to become a central pillar of institutional market infrastructure, reshaping liquidity management, settlement processes, and cross-border payments.

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From Crypto to Institutional Rails
Moody’s emphasizes a dramatic transformation:

• Settlement Growth: In 2025, stablecoins processed $9 trillion in settlement activity, an 87% increase year-over-year.
• Institutional Integration: Fiat-backed stablecoins and tokenized deposits are being adopted for liquidity management, collateral transfers, and global settlements.
• Market Plumbing: Stablecoins are now viewed as part of the “plumbing” of financial markets, comparable to clearinghouses and payment networks.

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Key Drivers of Adoption

• Efficiency: Near-instant settlement compared to traditional bank transfers.
• Transparency: On-chain records reduce counterparty risk and improve auditability.
• Global Reach: Stablecoins bypass legacy intermediaries in cross-border transactions.
• Tokenization Trend: As bonds, funds, and credit products become tokenized, stablecoins act as the settlement layer.

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Risks and Challenges
Moody’s also warns of hurdles:

• Regulatory Scrutiny: Concerns over systemic risk, consumer protection, and monetary sovereignty.
• Operational Risks: Smart contract vulnerabilities and collateral management issues.
• Fragmentation: Competing standards and issuers may hinder interoperability.

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Outlook for 2026
By 2026, Moody’s expects stablecoins to be fully embedded in institutional finance, functioning as indispensable infrastructure for global markets. Their role will extend beyond crypto into mainstream finance, supporting tokenized ecosystems and reshaping liquidity flows.

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Conclusion
Stablecoins are transitioning from speculative instruments to core components of financial infrastructure. Moody’s perspective underscores their growing importance in a tokenized financial system where efficiency, transparency, and global accessibility are paramount. As adoption accelerates, stablecoins may redefine how money moves across borders and institutions.