With rising liquidity, regulatory clarity and institutional use, stablecoins are moving beyond crypto trading to challenge traditional payment networks, DWS said.
By Will Canny, AI Boost|Edited by Nikhilesh De
Oct 14, 2025, 3:05 p.m.
- DWS said stablecoins are evolving into core payment infrastructure, surpassing Visa and Mastercard in transaction volumes.
- Regulatory clarity and growing liquidity are driving institutional adoption, especially for euro stablecoins.
- The asset manager sees new use cases ahead but warns of risks tied to reserves, issuer trust and regulation.
Stablecoins are rapidly moving from niche products to core payment infrastructure, according to asset management giant DWS.
With a combined market cap above $250 billion and transaction volumes outpacing Visa (V) and Mastercard (MA), they’ve become liquid, globally traded assets favored by institutions, DWS said in the report last week.
STORY CONTINUES BELOW
Euro stablecoins are setting new benchmarks for efficiency and acceptance, according to the report.
Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing a payment infrastructure, and are also used to transfer money internationally.
The German investment manager sees regulation such as Europe’s Markets in Crypto-Assets (MiCA) regulation driving adoption, while growing liquidity and interoperability are making stablecoins integral to banking, treasury and B2B payment systems. That integration could unlock new use cases, from mass payments to automated settlements.
Still, risks remain, DWS said. These include reserve transparency, issuer trust and regulatory shifts.
“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; in the report.
Read more: Stablecoin Surge Could Trigger $1T Exit From Emerging Market Banks: Standard Chartered
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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