A new report has found that over the last decade, stablecoins have risen to become a key link between traditional markets and decentralized markets, with the power to transform private markets. Traditionally viewed as a ‘safe haven’ by cryptocurrency traders, stablecoins are a type of cryptocurrency designed to maintain a steady value by pegging their value to a stable asset, most commonly the U.S. dollar, to reduce volatility. The Impact of Stablecoins, a report jointly published by IFI Global and Jersey Finance, found that growth has accelerated over the past year, outpacing that of traditional asset classes and reaching a total market capitalization of more than $300 billion as of October 2025. The report comes as the U.S. Securities and Exchange Commission this week issued an interpretation clarifying how federal securities laws apply to certain crypto assets and transactions involving crypto assets.
The SEC’s interpretation is complemented by the CFTC, which joined the interpretation to provide guidance that it and its staff will administer the Commodity Exchange Act consistent with the SEC’s interpretation. Included in the interpretation is a coherent token taxonomy for digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. As defined by the SEC, stablecoins are considered a broad category of crypto assets that may or may not be securities depending on their characteristics. In July 2025, Congress enacted the GENIUS Act, creating a comprehensive regulatory framework for a specific type of stablecoin known as a ‘payment stablecoin,’ defined as a digital asset used for payment or settlement with issuers obligated to redeem for a fixed monetary value.
The past 12 months have been pivotal in the journey of stablecoins, as they have seen a rapid acceleration in issuance and volume. This ‘new financial architecture’ is being constructed in domiciles such as Jersey, which already offers a strong private markets and digital assets proposition and can help drive the evolution of stablecoins and the digitalization of the financial ecosystem. The research traces the growth of stablecoins to greater adoption by institutional investors, with the asset becoming an established segment of private markets portfolios. Of the U.K. and U.S. private fund managers surveyed, many were considering incorporating stablecoins into their operations, but none were at the implementation stage.
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