Stablecoins Cement Role in Global Finance as ETFs and Infrastructure Expand

Stablecoins and the Future of Financial Infrastructure

In 2025, stablecoins emerged as a foundational pillar of the global financial system, no longer operating as a parallel digital asset class but instead becoming embedded in traditional infrastructure. According to a report, regulatory clarity, institutional adoption, and purpose-built settlement environments helped drive this transformation.

Chiara Munaretto, Founding Managing Partner of Stablecoin Insider, noted that the year marked a turning point for stablecoins, which are now shaping how money moves globally.

The report detailed how infrastructure providers like Stride and Kea are bridging traditional banking systems with on-chain assets, enabling banks to process stablecoins with institutional-grade controls. This shift is supported by a growing ecosystem of partners, including compliance specialists and market participants, who are helping scale and sustain operations across regions like Latin America and Southeast Asia. According to the report.

Meanwhile, Amplify launched two new ETFs—Amplify Stablecoin Technology ETF (STBQ) and Amplify Tokenization Technology ETF (TKNQ)—to capture the rising importance of stablecoins and tokenization in digital finance. The ETFs track a diversified index of companies generating revenue from stablecoin-related infrastructure, including Visa, Circle, and PayPal. These products reflect broader regulatory and market developments, as the U.S. and EU passed laws supporting the integration of stablecoins into financial systems.

Market Realities and VC Valuation Gaps

Despite this institutional momentum, the crypto market experienced a sharp correction in late 2025, exposing the gap between venture capital (VC) valuations and public market realities. According to data from CryptoRank, many high-profile blockchain startups, once valued near $1 billion, now trade at a fraction of those figures. For instance, Humanity Protocol, previously valued at $1 billion, now has a market capitalization of around $285 million.

This valuation reset was driven by tighter liquidity and a shift in investor sentiment away from speculative narratives. Fundraising Digest noted that during bull cycles, VCs often overprice projects, leading to sharp resets when market enthusiasm wanes. This phenomenon is not limited to high-profile projects. Lower-valued startups like Plasma and ICNT also saw significant declines, trading at much lower market caps than their VC-assigned figures.

The broader VC ecosystem in the crypto space remains subdued, with November 2025 seeing only 57 disclosed funding rounds. According to the report, while large deals—such as Revolut's $1 billion round and Kraken's $800 million raise—helped offset some of the weakness, early- and mid-stage investment activity continues to lag.

Institutional Adoption and Regulatory Integration

Stablecoins are now being integrated into financial infrastructure in ways previously unimaginable. The report from Stablecoin Insider highlights how governments and institutions are adopting these digital assets to solve local payment challenges and streamline financial operations. For example, companies like Mezen and Advix are helping translate complex regulatory frameworks into scalable systems that support both startups and governments.

The rise of "bankable" stablecoins is also gaining traction. Infrastructure providers are enabling banks to process these digital assets with the same institutional-grade controls as traditional fiat. This development is supported by real-world case studies from firms like Sorbet and Bloquo, which are demonstrating how stablecoins can address regional payment frictions.

On the compliance front, experts from Crystal Intelligence and Sumsub emphasized the importance of monitoring depegging risks and combating identity fraud. With sophisticated AI-generated fraud increasing by 180% year-over-year, the need for robust monitoring systems is more urgent than ever.

What This Means for Investors

For investors, the evolving stablecoin landscape presents both opportunities and risks. The integration of stablecoins into traditional financial infrastructure offers new avenues for capital deployment, particularly in tokenization and cross-border payments. However, the recent valuation resets for VC-backed projects underscore the importance of due diligence and risk assessment.

As 2026 approaches, market participants are watching for further infrastructure convergence, including the integration of tokenized bank deposits, central bank digital currencies (CBDCs), and regulated fiat-backed stablecoins. This shift could redefine how money is transferred and stored globally, creating new opportunities for investors willing to navigate the regulatory and technical complexities.

At the same time, the VC-backed crypto space remains volatile. Startups must demonstrate real-world utility and sustainable financial models to retain investor confidence. Those that can adapt to the current market reality—focusing on fundamentals rather than narrative-driven hype—stand to benefit the most from the ongoing transformation in stablecoin and tokenization markets.