Stablecoins to become the Building Blocks of Global Finance by 2026: Ripple PresidentMonica Long, the President of the payment giant, Ripple, believes that the role of Stablecoins will become that of building blocks in global finance by the year 2026.
Important Points - Integration with Legacy Systems: The stable coins will be integrated into the traditional financial systems, becoming integral parts of the global payment systems over the next five years.
- Cross-Border Payment Services: Stablecoins are poised to become a norm in cross-border payment services.
But, Business-to-Business Payment - Next Adoption Wave: Long pegs the next wave of adoption to business-to-business payments, courtesy of the pursuit of efficiencies by corporations.
- Effect on Corporate Balance Sheets: This innovation has the ability to unlock trapped funds on corporate balance sheets by providing real-time settlement capabilities and cash flow management solutions. Crypto Becomes an Operating Layer of Finance- Evolution of Crypto: Crypto is expected to move from being an alternative asset class to becoming an operating layer of finance, and by the end of 2026, balance sheets are expected to manage more than $1 trillion of tokenized and digital assets. - Regulatory Clarity: Regulatory clarity is one of the most important factors for this transition, and frameworks such as MiCA regulation by the EU provide foundational frameworks for the compliant issuance of stablecoins. "Custody and M&A- Increased Consolidation" - Long expects a heightened level of consolidation within the crypto infrastructure, especially with regards to custody, as a result of banks, service providers, and crypto players trying to expedite their respective blockchain agendas. • Future Outlook: The M&A activity in crypto will look to expand beyond the crypto industry, with a drive for usability and scalability.
