Stablecoins market has grown to about $320 billion, but the Bank for International Settlements says its main use is still crypto trading.
Stablecoins are still used mainly for crypto trading rather than everyday money, even after growing into a roughly $320 billion market, the Bank for International Settlements (BIS) said in its 2026 annual report.
The Switzerland-based institution owned by central banks argued that stablecoins have gained attention mainly because they promise dollar-like digital money. But the report pushed back on the idea that they already work as a broad payment system:
“In practice, the main use cases of stablecoins so far have been for crypto trading and, to a lesser extent, as offshore stores of value in EMDEs [emerging market and developing economies] with currency vulnerabilities.”
Stablecoins’ cross-border payment case is also less clear, according to BIS, because “their performance is uneven once fees, spreads and on-/off-ramp costs are considered.”
Read also: Tether’s USDT Overtakes Ethereum by Market Cap as ETH Price Crashes to $1,500
Not Quite Money Yet
Although BIS acknowledged that the stablecoins market had grown to about $320 billion by the end of May, it said the sector remains small next to the trillions of dollars held in bank deposits.
More importantly, according to the report, the question is whether stablecoins can actually act as money. The BIS explained that stablecoins try to emulate the functions of money but exist outside the framework of institutions which, per the BIS, ensure trust in bank deposits and central bank money:
“Trust is the foundation of money. What matters most is that money is accepted for
payment with no questions asked.”
BIS argued that current stablecoins don’t meet that standard yet as they don’t settle on central bank balance sheets, can’t guarantee exchange at par across issuers and blockchains under all conditions, and still face redemption frictions.
According to BIS, current stablecoin designs “resemble exchange-traded fund shares rather than a means of payment.”
Read more: USDC Crypto Future: Can USDC Become the Leading Stablecoin in 2026?
