Wall Street Pours In as Stablecoin Adoption Explodes

Alchemy co‑founder and president Joe Lau said stablecoin adoption is accelerating as traditional banks, fintech firms and payments platforms expand use cases beyond the long dominance of USDT and USDC exchanges. Lau framed the trend as a move from siloed trading activity toward broader infrastructure adoption, with institutional players integrating stablecoins for treasury, settlement and cross‑border payouts. The recent momentum reflects growing confidence in tokenized cash rails among legacy financial firms. The shift matters because it can diversify counterparty and reserve structures, speed settlement, and lower costs for corporate and retail flows, while inviting closer regulatory scrutiny. For market participants, increased institutional demand could boost liquidity and drive innovation in custody, compliance tooling and interoperability. Observers say the next phase will test how quickly banks and regulators can operationalize those rails at scale without undermining stability.