By 2030, stablecoins will represent traditional fiat like dollars and euros on blockchain rails, driving a full shift to onchain finance as tokenized assets and stablecoin rails become the dominant method for cross-border transfers and institutional settlement.
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Stablecoins will tokenise fiat for everyday transfers
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Institutional entry and regulatory clarity are accelerating tokenization and stablecoin adoption.
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Security trade-offs remain: bridges, smart contracts, and custody need stronger safeguards.
stablecoins onchain finance tokenization — Learn why fiat will run on blockchains by 2030. Read expert insight and next steps.
Tether’s co-founder, Reeve Collins, forecasts that most forms of money, including dollars and euros, will exist as blockchain-based stablecoins within the next five to ten years.
Reeve Collins, co-founder of Tether, told Token2049 in Singapore that the future of money is tokenized. He predicts that by 2030, “all currency will be a stablecoin,” meaning traditional fiat will run on blockchain rails while retaining its familiar unit names like dollars and euros.
Collins argued that stablecoins and tokenized assets will become the primary rails for moving money because they offer superior speed, transparency and composability compared with legacy systems.
Published: 2025-10-03 · Updated: 2025-10-03
What does Collins mean by “stablecoins” and will fiat truly go onchain?
Stablecoins in Collins’ view are fiat-denominated units running on blockchain rails that enable near-instant, programmable transfers. He expects widespread adoption as banks and institutions issue tokenized versions of existing currencies to capture efficiency and new revenue streams.
How is the US regulatory shift affecting institutional adoption?
Collins described a positive pivot in the US stance toward crypto this year as the key catalyst for institutional entry. With clearer signals from regulators, many large financial firms are now exploring stablecoin issuance and tokenized products previously blocked by regulatory uncertainty.
Why is tokenization considered a major narrative for returns and utility?
Tokenized assets can move globally without traditional intermediaries, increasing speed and transparency. Collins notes that once an asset is onchain, its utility rises — and higher utility can translate into better returns for holders and users.
Tokenization also enables composability: onchain assets can be programmatically combined, collateralized, and integrated into decentralized applications and institutional systems alike.
What are the main risks of a fully onchain financial system?
Collins warned of technical and operational risks: bridge vulnerabilities, smart contract bugs, weak wallet security, and social-engineering attacks remain significant. He stressed that security is improving but trade-offs between self-custody complexity and custodial convenience will persist.
How will services evolve to manage custody and user choice?
Expect a spectrum of custody models: robust custodial services for institutional users and increasingly user-friendly non-custodial options for retail. As enterprises build native stablecoin rails, hybrids mixing CeFi controls and DeFi primitives will emerge.
Frequently Asked Questions
How quickly will banks issue their own stablecoins?
Many banks are piloting tokenized currency projects now; wider issuance depends on regulatory frameworks and interoperability standards. Early institutional stablecoins could scale within the next 3–5 years as rails and compliance mature.
Are there examples of tokenized fiat in production today?
Yes. Several USD-pegged and other fiat-pegged stablecoins operate today and are used for trading, settlement and payments. Official central bank digital currency pilots also test similar rails in sovereign contexts.
Key Takeaways
- Stablecoins will be mainstream: Banks and institutions are moving to tokenized fiat for efficiency and new business models.
- Tokenization boosts utility: Onchain assets provide faster settlement, greater transparency and composability for financial products.
- Security remains critical: Bridges, smart contracts and custody must be strengthened as adoption grows; expect hybrid custody solutions.
Conclusion
Reeve Collins’ forecast that “all currency will be a stablecoin” underscores a broader shift to tokenization and onchain finance. While regulatory clarity and institutional demand are accelerating adoption, stakeholders must prioritize security and interoperability. Watch for continued rollouts of institutional stablecoins and evolving custody models.
