BlackRock 2026 Outlook: Stablecoins to Challenge Countries' Sovereignty Over Fiat, Becoming the Bridge Between Traditional Finance and Digital Liquidity

BlackRock’s 2026 Global Market Outlook highlights the potential for stablecoins to challenge government control over fiat currencies, especially in emerging markets. The asset manager noted that rapid adoption of stablecoins could lead to a contraction in the use of traditional fiat currencies. This warning follows similar concerns raised by Standard Chartered in October 2025, which projected over $1 trillion in deposits could shift from emerging market bank accounts to stablecoins.

The U.S. regulatory landscape also plays a role in this development. The Crypto for the People Act, enacted in July 2025, allows crypto firms to offer yield-like products that traditional banks are prohibited from providing. This new regulatory framework has the potential to further erode the dominance of traditional financial institutions by offering more attractive returns to investors and consumers alike.

Samara Cohen, BlackRock’s Global Market Development Director, emphasized that stablecoins are no longer a niche product but rather an emerging bridge between traditional finance and digital liquidity. The firm’s assessment aligns with broader industry trends, including regulatory clarity and institutional adoption of digital assets across multiple jurisdictions.

Why Did This Happen?

The rise of stablecoins is driven by regulatory shifts and increased consumer demand for alternative financial tools. In July 2025, the U.S. passed the Digital Asset Market Clarity Act to define the jurisdictional oversight of digital tokens. This regulatory clarity, along with the appointment of a new SEC leadership in early 2025, reduced uncertainty and supported the growth of ETFs and digital assets.

At the same time, the U.S. government introduced Executive Order 14178 in 2025, creating a federal “Crypto Czar” to coordinate national crypto policy. These combined regulatory actions have laid the groundwork for stablecoins to integrate more deeply into core financial systems, particularly in the U.S.

How Did Markets React?

The impact of stablecoins is not limited to regulatory environments. The U.S. and global markets are witnessing significant adoption of stablecoins in both retail and institutional settings. For example, the GENIUS Act set a global standard for stablecoins, with the UK, Singapore, and the EU’s MiCA framework driving the adoption of compliant tokens. By the end of 2025, stablecoins had surpassed $250 billion in market capitalization and accounted for over 30% of on-chain transactions.