A new report from BNYÂ projects that the combined market for stablecoins and tokenized cash instruments will expand more than tenfold by 2030, reaching $3.6 trillion as institutional adoption accelerates.
The forecast highlights the growing convergence between traditional finance and on-chain settlement infrastructure, driven by the need for faster, programmable, and compliant money movement.
According to the report, stablecoins, currently valued at around $300 billion globally, could see their market capitalization soar to $1.5 trillion over the next five years. Meanwhile, tokenized deposits and digital money market funds (MMFs) are expected to collectively account for an additional $2.1 trillion, reflecting rising demand among banks, asset managers, and corporates seeking blockchain-based liquidity solutions.
Integration, Not Displacement, of Financial Rails
BNY emphasized that the growth of tokenized finance will complement rather than replace traditional financial systems. The bank’s analysts predict a hybrid model in which blockchains serve as a transparent, programmable settlement layer for real-world assets and fiat-backed instruments, while regulated institutions retain oversight of compliance and risk management.
The report concludes that tokenized cash instruments will play a pivotal role in collateral optimization, real-time treasury management, and the broader digitization of capital markets, positioning them as a cornerstone of the next evolution in global finance.
