Institutions Drive Mainstream Crypto Adoption as Stablecoins Surpass $2 Trillion Outlook

Large financial institutions are increasingly shaping the dominant narratives within the crypto space, according to a fintech executive highlighted in recent reports. Arthur Azizov, founder of B2 Ventures, stated that institutions—such as major banks, governments, and stablecoin issuers—are not only influencing the direction of the industry but are expected to maintain that momentum moving forward [1]. This shift is evident in the growing adoption of stablecoins, which have moved beyond their niche origins in crypto trading to become a focal point for traditional financial players [1].

The institutional push has also extended to the broader fintech infrastructure. A growing number of investors are shifting their focus from speculative crypto assets to foundational infrastructure, particularly in the realm of crypto payment rails [1]. This trend has been reinforced by the U.S. Congress passing the Genius Act in July 2025, a legislative move that legitimizes the use of stablecoins and is expected to accelerate their adoption in mainstream finance [1]. The Act has prompted a significant response from both public and private sectors, with major fintech firms and banks aligning their strategies accordingly.

Tether and Circle, two of the largest stablecoin issuers, are now among the top holders of U.S. Treasuries, a development that has drawn attention from financial analysts and regulators alike. According to a report by Apollo, stablecoins are currently the 18th largest external holders of U.S. government debt, with the sector projected to grow to $2 trillion by 2028 [1]. The rapid expansion of stablecoins has also been reflected in market valuations, with the market cap of USDC, Circle’s stablecoin, rising 90% in the past year [1].

The broader implications of this institutional adoption are still being assessed. While proponents argue that stablecoins will enhance the efficiency of global finance and support the dollar’s dominance, critics caution against potential risks to financial stability, particularly in the banking sector [1]. Despite these concerns, the momentum behind stablecoins and institutional participation shows no sign of slowing down.

Source:

[1] Cointelegraph – Institutions dominating mainstream crypto adoption

https://cointelegraph.com/news/institutions-dominating-mainstream-crypto-adoption