Stablecoins Enter the Mainstream: U.S. Legislation Signals Long-Term Integration

In its July 28, 2025 commentary, the BlackRock Investment Institute examines the growing significance of stablecoins and their integration into the global financial system, driven by the recently passed Genius Act.

• U.S. legislation now formalizes stablecoins as payment tools, potentially reinforcing U.S. dollar dominance without disrupting Treasury markets.

• The stablecoin market has grown to $250 billion, while bitcoin, up 25% YTD, continues to serve as a distinct portfolio diversifier.

• Short-term U.S. Treasury yields remain steady as demand from stablecoin issuers is offset by broader market dynamics and rising bill issuance.

Explore the full report to understand how regulatory shifts and digital asset adoption may reshape currency systems and long-term portfolio construction.