Dover – November 06, 2026 -- The global stablecoins and central bank digital currency (CBDC) market, valued at USD 32.24 billion in 2025, will reach USD 409.57 billion by 2034, according to Polaris Market Research. That implies a 32.7% compound annual growth rate from 2026 to 2034, as banks, payment providers and central banks extend digital currencies beyond crypto trading into payments, settlement and remittances.
GENIUS Act and MiCA pull banks into stablecoin issuance
Rules on issuance, reserves and redemption are encouraging banks, card networks and payment providers to build stablecoin services. The GENIUS Act in the United States and the Markets in Crypto-Assets (MiCA) framework in Europe supply those rules.
Incumbents are already testing live use cases. In September 2026, U.S. Bank completed a cross-border payments pilot using its USBDC stablecoin on the Stellar blockchain. In October 2026, BNY expanded its digital asset custody platform to selected European Union institutions under MiCA. Also in October 2026, Circle and Tereina partnered to integrate USDC and EURC into enterprise payments through SAP.
Stablecoins held 68.4% of the market in 2025
Fiat-backed stablecoins lead on use in digital payments, decentralized finance, cross-border transactions and liquidity. CBDCs are drawing attention as central banks explore faster payment systems, wider financial access and institutional settlement.
By component, issuance held the largest share in 2025. Issuers need systems to create digital currencies, manage reserves and process redemptions, and regulatory requirements are raising demand for that infrastructure. By technology, blockchain held the largest share, with interoperability and cross-chain solutions gaining importance.
Banks hold 42.7% of demand while fintechs grow fastest at 36.4%
Banks accounted for 42.7% of the market in 2025, driven by demand for digital asset custody, transaction management and regulated payment infrastructure. Fintechs and payment service providers are the fastest-growing end users at a 36.4% CAGR. They use stablecoins for payment corridors, digital wallets and payout services, and to cut settlement times.
Payments and settlement accounted for 34.6% of the market by application in 2025. Remittances are the fastest-growing application at a 35.6% CAGR, as stablecoins offer faster and potentially cheaper international transfers than traditional channels.
North America leads with 38.6%, Asia Pacific to grow at 35.8%
North America held a 38.6% share in 2025. Asia Pacific is forecast to post the fastest regional CAGR, at 35.8% during 2026-2034, on rising digital payment adoption, expanding fintech services and government-led digital currency programs.
Reserve transparency, licensing and deposit flight remain obstacles
Limited reserve transparency among issuers can erode trust, and differing licensing rules across countries complicate international expansion. Polaris also flags the risk of deposits moving from traditional banks into digital currencies. Issuers must maintain transparent reserves and meet regulatory requirements.
New revenue pools include settlement of tokenized real-world assets and enterprise treasury operations, where banks and payment providers can use stablecoins for fund transfers and liquidity management. Non-USD stablecoins could also support payments in other currencies and widen international market access.