The explosive rise of stablecoins in 2025 is reshaping the global financial landscape and laying the groundwork for the next wave of decentralized finance (DeFi) innovation, according to Geoffrey Kendrick, Head of FX and Digital Assets Research at Standard Chartered.
In a new research report, Kendrick noted that the growth of stablecoins has moved far beyond the boundaries of traditional finance (TradFi), providing liquidity and accessibility that are accelerating the mainstream adoption of DeFi platforms.
“Stablecoins are no longer just a bridge between crypto and fiat; they are becoming the foundation for a new decentralized financial infrastructure,” Kendrick said.
According to Standard Chartered’s estimates, tokenized real-world assets could surpass $2 trillion by 2028, driven by the increasing integration of stablecoin-backed assets into DeFi ecosystems.
The bank highlighted that 2025 has witnessed unprecedented institutional participation in stablecoin issuance and usage, as major fintech firms, asset managers, and even banks explore blockchain-based payment and settlement solutions.
Stablecoins, which are typically backed 1:1 by fiat currencies or short-term government securities, have become critical instruments for liquidity and on-chain transactions.
Their stability and transparency have encouraged large-scale DeFi applications such as lending, derivatives, and tokenized asset trading to expand beyond speculative use cases.
Kendrick’s report also emphasizes that this rapid growth could transform how financial services operate. As non-bank entities leverage stablecoins for payments and credit, traditional intermediaries could face increasing competition from decentralized networks offering faster, programmable, and more inclusive financial products.
However, Standard Chartered cautioned that regulatory clarity remains a crucial factor. While the U.S., Europe, and parts of Asia are moving toward comprehensive frameworks for stablecoins, emerging markets still face infrastructure and policy challenges.
Still, Kendrick believes the long-term trajectory is clear: “Stablecoins are the connective tissue between traditional and decentralized finance, and 2025 marks the year they began redefining global liquidity.”
The report suggests that DeFi’s evolution is no longer a distant possibility but an ongoing reality, built on the foundation of stable, regulated digital money.