According to Polaris Market Research, fintech companies and payment service providers represent the fastest-growing user group, with a compound annual growth rate of 36.4%; in terms of applications, remittances lead with a growth rate of 35.6%.
Dover, Delaware, November 5, 2026 / PRNewswire / -- Polaris Market Research indicates that the global stablecoin and central bank digital currency ( CBDC ) market was valued at $32.24 billion in 2025 and is expected to reach $409.57 billion by 2034. The market is projected to have a compound annual growth rate of 32.7% between 2026 and 2034. According to this institution, banks, payment service providers, and central banks around the world are expanding the use of digital currencies from cryptocurrency transactions to a wider range of scenarios. In the financial services industry, the application of digital currencies in daily payments, settlements, and remittances is creating new opportunities.
Regulators push banks into the stablecoin sector
Regulatory clarity is helping stablecoins enter mainstream financial services. Clear rules have emerged regarding the issuance, reserve management, and redemption of stablecoins, including the US's GENIUS Act and Europe's MiCA Framework for Crypto Asset Markets. Polaris states that these regulations are encouraging banks, card networks, and payment service providers to develop stablecoin services, and they also provide clearer guidelines for companies entering the digital currency market.
Financial institutions are also testing real-world applications. In September 2026, Bank of America ( U.S . Bank ) completed a real-time cross-border payment pilot using its USBDC stablecoin on the Stellar blockchain. In October 2026, JPMorgan Chase ( BNY ) expanded its digital asset custody platform to include some institutions in the European Union, based on the MiCA framework. Polaris indicates that these developments show that traditional financial institutions are becoming part of the digital asset ecosystem.
The main drivers of growth for stablecoins and the CBDC market
According to Polaris, multiple factors are driving the growth of the stablecoin and CBDC markets.
- Regulatory Clarification: The US GENIUS Act and the European MiCA framework provide clearer regulations for stablecoin issuers and service providers. These regulations support a wider range of institutions to participate.
- Banks and the bank card network are adopting: Financial institutions are investing in stablecoin issuance, custody, and settlement services. These investments are facilitating the integration of digital currencies into the traditional financial system.
- Real-time settlement: Blockchain-based payment systems allow transactions to be conducted outside of regular bank business hours and also support faster cross-border payments.
- Lower-cost remittances: Stablecoins provide a faster and potentially lower-cost way of transferring funds, which presents opportunities for international payment corridors.
Stablecoins and Market Segmentation of CBDC: Regional Prospects
Polaris has segmented the stablecoin and CBDC market from dimensions such as type, components, end-users, applications, technology, and regions.
By type: Stablecoins will account for 68.4% of the market in 2025. Their applications in digital payments, decentralized finance (DeFi), cross-border transactions, and fiat-backed liquidity support this leading share. Unlike the volatile assets in the broader cryptocurrency market, fiat-backed stablecoins are designed to maintain stable value, making them suitable for payments and financial transactions. At the same time, as central banks around the world explore faster payment systems, broader financial accessibility, and institutional settlements, CBDC is gaining more attention.
Divided by components: Those issued in 2025 will occupy the largest market share. Stablecoin issuers need systems for creating digital currencies, managing reserves, and handling redemptions. These systems help to maintain the value and reliability of digital currencies. Increasing regulatory requirements are also boosting the demand for secure issuance infrastructure.
Divided by end-users: Banks will account for 42.7% of the market in 2025. Their demand for digital asset custody, transaction management, and compliance payment infrastructure supports this position. Fintech companies and payment service providers are also adopting stablecoins. These companies use stablecoins to develop payment corridors, digital wallets, and payment services, and also utilize these systems to shorten settlement times and improve payment efficiency.
By application: Payments and settlements will account for 34.6% of the market by 2025. As stablecoins offer faster and potentially lower-cost international transfer methods, remittances are receiving more attention. Traditional international payments may involve longer processing times and higher transaction costs, while transfers based on stablecoins help to alleviate these issues, thus creating new opportunities in the cross-border payment market.
By technology: Blockchain will occupy the largest market share by 2025. It supports the issuance of digital currencies, transaction settlement, and ensures record transparency. The importance of interoperability and cross-chain solutions is also on the rise. These technologies enable digital currencies to flow between different blockchain networks and also help to improve the connectivity between financial platforms.
By region: North America will lead the market with a share of 38.6% in 2025. The Asia-Pacific region is becoming a key growth area. The increasing adoption rate of digital payments is supporting regional growth, and the expansion of fintech services, as well as government-led digital currency projects, are also creating new opportunities.
Market Challenges
According to Polaris, the market still faces several challenges. For stablecoin issuers, limited transparency of reserves may affect trust. Different licensing regulations in various countries also make international expansion difficult. Another concern is that deposits may flow from traditional banks to digital currencies. Issuers must maintain transparent reserves and comply with regulatory requirements. The institution stated that strong compliance and risk management will be crucial to achieve broader institutional adoption.
Emerging Market Opportunities
Polaris indicates that stablecoins are expanding from everyday payments to more scenarios. Their application in the settlement of tokenized assets is creating opportunities for the tokenized market. Financial institutions can use stablecoins to support transactions involving the digital representation of real-world assets. Corporate finance operations also present new growth opportunities. Banks and payment service providers can leverage digital currencies to improve fund transfers and liquidity management. Non-US dollar stablecoins may also support payments in different currencies and expand access to international markets.
Recent Progress
- October 2026: Circle and Tereina collaborate to integrate USDC and EURC into corporate payments through SAP.
- October 2026: Bank of New York Mellon ( BNY ) extended its digital asset custody services to certain EU institutions under the MiCA framework.
- September 2026: Bank of America ( U.S . Bank ) conducted a pilot project for cross-border payments using its USBDC stablecoin on Stellar.
Analyst's Viewpoint
Polaris Market Research Senior Analyst Apurva Agarwal stated: "According to the research by Polaris Market Research, as financial institutions begin to use digital currencies for payments, settlements, and remittances, stablecoins and the CBDC market are entering a new phase of growth. Our analysis indicates that stablecoins will account for 68.4% of the market by 2025, with the Asia-Pacific region expected to achieve the fastest compound annual growth rate of 35.8% between 2026 and 2034. The growing demand for faster cross-border transactions and regulated digital payment infrastructure is expected to create significant opportunities for market participants."
Major Companies
According to Polaris, the main companies in the stablecoin and CBDC markets include:
- Circle Internet Group
- Tether
- Paxos
- Ripple
- Visa
- Mastercard
- PayPal
- J.P. Morgan Kinexys
- Fireblocks
- Stellar Development Foundation
Relevant Research
Polaris indicates that its cryptocurrency payment solution report covers the tools used by merchants and payment service providers to accept and settle digital currencies.
About Polaris Market Research
Polaris Market Research is a global market research and consulting firm that provides market intelligence, industry analysis, and business insights covering more than 20 vertical industries. The company offers over 5,000 research reports, spanning various industries and segments. Its research is aimed at helping businesses understand market trends, identify growth opportunities, and make more informed business decisions.
Source
Polaris Market Research
