Stablecoins are rapidly transitioning from experimental crypto tools to mainstream financial infrastructure, according to a new report by German asset management giant DWS.
The firm said that with a combined market capitalization exceeding $250 billion and transaction volumes surpassing Visa and Mastercard, stablecoins have evolved into liquid, institutionally traded assets that now underpin a growing portion of the global payments ecosystem.
Institutional Shift and Regulatory Tailwinds
According to DWS, the rise of euro-denominated stablecoins marks a turning point for digital money in regulated finance, setting new standards for speed, efficiency, and acceptance. The report points to Europe’s Markets in Crypto-Assets (MiCA) framework as a key catalyst that’s accelerating institutional adoption by providing clear legal definitions and operational guardrails for issuers.
DWS noted that as liquidity and interoperability improve, stablecoins are increasingly being woven into banking, treasury, and B2B payment systems. This integration could pave the way for new applications such as automated settlements, mass disbursements, and programmable finance, areas that traditional payment rails struggle to match in efficiency.
Balancing Stability and Risk
Despite the progress, DWS cautioned that the asset class still faces challenges around reserve transparency, issuer reliability, and evolving regulation.
“Stablecoins exemplify the transformation of the financial system by combining stability with innovation, as well as efficiency with security,” said Alexander Bechtel, DWS’s Global Head of Digital Strategy, Products and Solutions.
The report aligns with a broader shift among traditional financial players, including Citigroup, which recently highlighted tokenized deposits and stablecoins as central to the future of cross-border payments and digital asset settlement.