New Study Highlights Critical Role of Stablecoins as Part of ‘New Financial Architecture’

Stablecoins are no longer peripheral to the asset management industry and have become a fundamental link between traditional and decentralised finance, with the potential to transform the private markets, according to a new report.

Titled ‘The Impact of Stablecoins’, the report is a joint publication between IFI Global and Jersey Finance. It was released this week and explores the rise of stablecoins over the past decade, their critical role in the digitalisation of the asset management infrastructure, and the significant opportunity they present in providing liquidity, inclusivity and operational benefits to fund managers and institutions.

While noting the exceptional development of the stablecoin market over the past year, the report also analyses the structural, operational and regulatory challenges that come with their utilisation, as well as how quality international finance centres (IFCs) like Jersey – which already offers a strong private markets and digital assets proposition – can help drive the evolution of stablecoins and the digitalisation of the financial ecosystem.

Key findings highlighted in the study include:

• Stablecoin growth has accelerated over the past year, outpacing that of traditional asset classes and reaching a total market capitalisation of more than US$300 billion in October 2025
• Within the investment universe, the growth in stablecoins is largely driven by greater adoption by institutional investors, with stablecoins becoming an established part of the investment industry – particularly on the private markets side
• 70% of UK and US private fund managers surveyed for the report were considering incorporating stablecoins into their operational development – though none were at the implementation stage yet
• Key benefits of stablecoins for private funds include enhanced liquidity, fractional ownership and tokenisation, improved investor accessibility, cross-border interoperability and speed
• Emerging regulatory frameworks around the world are signalling a shift towards recognising stablecoins as an integral part of the future financial system – but regulatory treatment remains varied across jurisdictions.
• Integrating stablecoins into managers’ operating systems is another challenge, with operational shifts in areas such as cash and treasury management being potentially time-consuming and expensive.

Commenting on the findings, Elliot Refson, Head of Funds at Jersey Finance, said: “The past 12 months have been pivotal in the journey of stablecoins, as they have seen a rapid acceleration in issuance and volume.

Now occupying a critical position within a new financial architecture, stablecoins are likely to transform how asset managers operate in the year ahead – in fact, with stablecoins on course to become a universal medium of value in the digital economy, asset managers will not be able to ignore them.

“However – and despite major legislative initiatives in key markets, not least the GENIUS Act in the US – challenges at both a regulatory and an operational level remain. Building on our previous analyses with IFI, this report takes a detailed look at the emerging landscape and highlights how IFCs such as Jersey – our jurisdiction’s first stablecoin from Deep Blue was authorised in 2024 – can play a crucial role, both in supporting managers and in providing the right ecosystem as stablecoins move centre stage.”

Simon Osborn, Editor of IFI Global and author of the report, commented: “Institutional investors are the key force behind stablecoin growth, with their positive impact on private market liquidity widely recognised among managers.

Yet, while the potential of stablecoins is clear, so too are the challenges – from upgrading technical infrastructure, to choosing forward-looking jurisdictions with robust and transparent regulatory frameworks. Stablecoins are set, however, to reshape how private fund managers organise their operational activities and, in doing so, may unlock opportunities that today are difficult to imagine.”

The report can be found on the Jersey Finance website: https://jsy.fi/3NA5cMw. It builds on previous papers exploring asset tokenisation, the rise of virtual assets and trends in alternative investing.