BlackRock reveals a historic breakthrough in crypto, with only one blockchain controlling the settlement layer

Stablecoin used to be just a utility within crypto, helping traders “park” USD between buy and sell orders without touching the fiat system. But as the market matures, BlackRock has begun viewing stablecoins as a foundational infrastructure layer for the entire digital financial market.

In the Global Outlook 2026 report, BlackRock states that stablecoins are moving beyond exchange platforms to integrate into mainstream payment systems. According to the report, stablecoins have strong potential to expand in cross-border remittances and everyday transactions in emerging economies.

This approach is particularly important because it shifts the question investors ask, especially when that perspective comes from an organization like BlackRock.

The issue is no longer whether stablecoins are good for crypto. The real question is whether they are moving toward becoming a parallel settlement infrastructure, or even embedded within, the traditional financial system.

If that happens, which blockchain will become the underlying layer for final settlement, collateral assets, and tokenized cash flows?

BlackRock raises this point directly. “Stablecoins are no longer niche markets,” said Samara Cohen, BlackRock’s Global Head of Market Development, in the report. They are “becoming a bridge between traditional finance and digital liquidity.”

From Trading Chips to Payment Rails

Stablecoins have thrived due to volatility in the crypto markets. Prices fluctuate constantly, banks close on weekends, and exchanges rely on fragmented fiat channels to process refunds.

USD-pegged tokens have solved this operational challenge by providing a unit of account and settlement asset that operates 24/7.

According to BlackRock, stablecoins have now surpassed their initial role. Integrating into mainstream payments and enabling cross-border transfers is the natural next step, especially given the delays, costs, and complexity of the correspondent banking system.

A key factor is the legal framework. In the US, the GENIUS Act was signed into law on 07/18/2025, establishing a federal framework for stablecoin payments, including reserve requirements and transparency standards.

Legal clarity doesn’t guarantee immediate widespread adoption, but it significantly changes how banks, major retailers, and payment networks assess compliance risks.

Market size is no longer theoretical. The total value of stablecoins reached approximately $298 billion on 01/05/2026, with USDT and USDC still dominant. BlackRock notes that stablecoins continue to hit capitalization highs even amid crypto price volatility, serving as a primary source of “USD liquidity and on-chain stability” for the system.

The combination of scale and legal clarity is why stablecoins are beginning to appear in less obvious places, such as the settlement departments of global payment systems.

In December 2025, Visa provided a specific example by deploying USDC settlement in the US, allowing partner issuers and acquirers to process payments directly with Visa using Circle’s stablecoin. Early-stage banks conducted settlements on Solana, aiming to accelerate capital turnover, operate seven days a week, and maintain weekend and holiday operations.

Stablecoins are moving into the “backbone” of finance, a part often only noticed during crises: settlement.

Settlement as the Place Where Value Accumulates

As stablecoins increasingly resemble digital USD, the next question is where they will “reside” as the system expands.

In more complex use cases such as collateralized assets, treasury management, tokenized money market funds, or cross-border clearing, the underlying infrastructure becomes more critical than marketing. This layer must enable clear transaction finality, deep liquidity, comprehensive tools, and governance and security models trusted by institutions for decades.

This is where Ethereum begins to show its role.

By 2026, Ethereum’s value isn’t about being the cheapest blockchain for transferring stablecoins. Many other networks do that well, and Visa’s USDC experiment on Solana shows high-performance chains still have a place.

Ethereum’s advantage lies in becoming the anchor layer for an ecosystem that separates execution from settlement.

In the rollup model, Ethereum acts as the settlement layer, maintaining security and providing objective finality when disputes arise on other chains. Users can trade quickly and cheaply on Layer 2, but the main chain remains the final arbiter. The larger the activity, the more valuable the arbitration role becomes.

Tokenization Quietly Pulls Organizations Toward Ethereum

BlackRock’s stablecoin analysis also tells a story about tokenization. The report describes stablecoins as “a modest but meaningful step” toward a tokenized financial system, where digital USD coexists with and sometimes redefines traditional intermediaries.

Tokenization makes this concept real on the balance sheet by issuing ownership rights to real assets, such as Treasuries, directly on the blockchain. Stablecoins serve as the cash flow for subscriptions, redemptions, and secondary trading.

In this area, Ethereum remains central. Data shows Ethereum hosts about $12.5 billion worth of tokenized real assets, roughly 65% of the market share as of early 01/2026.

BlackRock is a key driver. Its tokenized money market fund BUIDL was launched first on Ethereum, then expanded to other chains including Solana and Ethereum’s Layer 2s, as Treasury tokenization became one of the clearest on-chain finance applications.

This strategy reflects a familiar pattern among organizations: starting where liquidity, custody, and smart contract standards are mature, then gradually expanding as distribution channels grow.

JPMorgan also follows a similar approach by launching a tokenized money market fund on Ethereum, allowing subscriptions in cash or USDC, and aligning this move with the evolving legal framework for stablecoins after the GENIUS Act.

This indicates stablecoins not only need a fast network for payments but also require a “settlement infrastructure” that is reliable enough for collateralized assets, yield-generating cash tools, and institutional-grade finance.

Ethereum is gradually becoming the default choice, not because it outperforms all technical metrics, but because it’s where the highest-value transactions are settled.

Opportunities with Risks

BlackRock also recognizes the flip side. In emerging markets, stablecoins can expand access to USD but may weaken monetary control if domestic currency use declines. This is an economic-political challenge, not purely technological, and could trigger policy restrictions.

Issuer risk also exists. Not all stablecoins are the same, and market trust heavily depends on the quality of collateral assets. S&P Global Ratings’ downgrade of Tether’s reserves in November 2025 is a reminder that system stability may depend on what backs the peg.

Ethereum isn’t necessarily the only settlement layer. Visa’s choice of Solana for USDC settlement shows that large organizations are willing to use multiple chains if operationally suitable. Circle’s multi-chain strategy helps keep stablecoin liquidity flexible and reduces dependence on a single network.

However, as stablecoins proliferate, value will gravitate toward layers that can provide reliable settlement, deeply integrated with tokenized assets, and with security models strong enough to give organizations confidence to put real money and assets on-chain.

That’s why ETH is often seen as a reasonable bet for the settlement standard of tokenized USD. If stablecoins truly become the bridge between traditional finance and digital liquidity as BlackRock suggests, that bridge still needs a solid foundation.

In the current crypto market architecture, Ethereum remains the backbone that organizations continually return to.

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