BlackRock’s latest market analysis indicates that dollar-pegged stablecoins are reinforcing the U.S. dollar’s global dominance amid growing regulatory clarity. Stablecoin transactions showed over 25% annual growth last year, coinciding with the passage of the GENIUS Act which establishes formal legal frameworks for these digital assets.
The landmark GENIUS Act legislation recognizes stablecoins as legitimate payment instruments, providing regulatory certainty for issuers and users. Demonstrating commitment to blockchain integration, BlackRock launched its tokenized treasury liquidity fund leveraging distributed ledger technology and maintains a minority stake in Circle, the entity behind the USD Coin stablecoin.
Despite stablecoins’ strengthening of traditional finance systems, Bitcoin recorded over 25% growth last year. BlackRock positions Bitcoin as a complementary return diversifier, noting its unique characteristics and increasing adoption among institutional investors for alternative allocation strategies.