BlackRock calls stablecoins a bridge to traditional finance - ForkLog: cryptocurrencies, AI, singularity, future

# BlackRock Calls Stablecoins a Bridge to Traditional Finance

BlackRock analysts have noted the transformation of the financial system under the influence of cryptocurrencies and the growth of US national debt. According to the company’s report, “stablecoins” have become a bridge between the digital and traditional economies.

Experts emphasized that stablecoins are no longer just a tool for crypto trading. By November 2025, the market volume had exceeded $250 billion. The asset is increasingly being used for cross-border transfers and everyday payments.

Source: BlackRock report. The report mentions the adoption of the GENIUS Act in the US, which created the first regulatory framework for payment “stablecoins.” Issuers were allowed to use marketing incentives, making them competitors to bank deposits and money market funds.

A massive capital outflow into digital assets could change the mechanisms of economic lending, according to BlackRock. Banks risk losing some liquidity.

Moreover, in developing countries, stablecoins are replacing weak national currencies. This expands access to the dollar but complicates the monetary policy of local central banks.

BlackRock also highlighted other key trends:

1. AI and Energy. The development of artificial intelligence faces physical limitations. By 2030, data centers may consume up to 25% of all electricity in the US.
2. Politics. The world has “entered a third world order” after World War II. US-China relations define the global agenda, while Europe is increasing defense spending.
3. Investments. The company maintains a positive outlook on US stocks amid AI development.

The report also noted the problem of US national debt. BlackRock analysts no longer consider long-term Treasury bonds a reliable portfolio safe haven. Investors were advised to seek alternative hedging instruments amid growing budget deficits.

Larry Fink and Bitcoin

BlackRock CEO Larry Fink explained his dramatic shift in views on cryptocurrencies. Speaking at the NYT DealBook summit, he commented on his journey from harsh industry criticism to launching the largest spot Bitcoin ETF.

Fink acknowledged that his transition from associating digital assets with money laundering to managing billions in digital gold has become “a vivid public example” of changing convictions. According to the BlackRock CEO, “his thought process is constantly evolving.”

Fink described bitcoin as a “fear asset.” The top manager noted that the price of the first cryptocurrency declines when there is certainty in the markets, for example, amid news about US-China trade deals or easing political tensions.

He also warned short-term investors about the risks. Fink stressed that bitcoin remains an extremely volatile instrument. Successful trading requires a perfect sense of the market, which, according to the BlackRock head, most people do not possess.

Recall that in November, the head of the crypto division of the investment firm, Robert Mitchnick, stated that most clients of the world’s largest asset managers do not consider digital gold to be a means of payment.