Stablecoins Become Institutional Digital Cash, Says Moody’s

Moody's new outlook report indicates that stablecoins are transitioning from a crypto-native tool to essential institutional market plumbing, processing an estimated $9 trillion in settlement volume in 2025, an 87% increase year-over-year. Fiat-backed stablecoins and tokenized deposits are becoming "digital cash" for liquidity management, collateral movements, and settlements within an increasingly tokenized financial system. Banks and asset managers are investing heavily in digital finance infrastructure, with over $300 billion potentially invested by 2030, utilizing stablecoins for cross-border payments and repo markets, as seen in trials by institutions like Citigroup and Société Générale. While regulation is catching up globally (citing MiCA and US proposals), Moody's warns that this shift introduces new risks, including smart contract failures and cyberattacks. Therefore, security, interoperability, and governance are critical for stablecoins to serve as reliable settlement assets rather than systemic vulnerabilities.

(Source：Cointelegraph)