UBS Report Projects Stablecoin Market to Reach $1.2 Trillion by 2031

In a comprehensive report, UBS forecasts the stablecoin market will grow to approximately $1.2 trillion by 2031, with real-world payment volumes reaching $3 trillion. Analysts highlight stablecoins as critical infrastructure for capital market tokenization, machine-native payments, and agentic commerce. The report notes that stablecoin issuers have become significant holders of short-term U.S. Treasury bills. UBS identifies tokenization as a key driver for capital efficiency, potentially unlocking trillions in repo market liquidity. Furthermore, the report discusses the impact of regulatory frameworks like the GENIUS Act and the role of blockchain in facilitating 24/7 financial markets and AI-driven commerce.