Nearly nine in ten wealth managers say they now have a “good or better” understanding of stablecoins, according to new global research from Brava Finance, signalling growing institutional comfort with a corner of digital assets once regarded as niche. Of the 88 per cent who report solid familiarity, 16 per cent describe their knowledge as “excellent”.
The survey, conducted across 13 countries including the US, UK, EU, UAE, Brazil, Singapore, South Korea, Switzerland and Hong Kong, suggests stablecoins are moving rapidly from the fringes of retail speculation into the mainstream of wealth management.
More than 90 per cent of respondents say they have already allocated funds to stablecoins. Among those investors, 94 per cent are using them to generate yield, typically through decentralised lending and credit strategies.
“Wealth managers have identified that digital assets such as stablecoins offer them strategic and tactical opportunities within decentralised finance,” said Graham Cooke, chief executive of Brava Finance. “They are now seeking to build digital asset strategies that will streamline processes, remove frictions and offer diversified sources of yield that improve risk-adjusted returns for their clients.”
Stablecoins, typically digital tokens pegged to a fiat currency such as the US dollar, are increasingly viewed as instruments for payments, liquidity management and access to decentralised financial markets. All wealth managers surveyed said they are developing a strategy to invest in them; about 36 per cent already have one in place.
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The most widely cited use case is fast, low-cost transactions, highlighted by 74 per cent of respondents. Delegates also pointed to access to decentralised finance opportunities (72 per cent), portfolio diversification (66 per cent), and the ability to “park” funds during periods of market volatility (also 66 per cent). Around 22 per cent are focused primarily on yield generation from lending protocols.
Brava Finance and stablecoin custody
Brava Finance, a non-custodial stablecoin management platform, has launched a Stablecoin SMA and its first credit fund, offering institutional access through a regulated Cayman vehicle. The fund uses custody solutions from Fireblocks and Northern Trust. It aims to provide institutions with exposure to stablecoin-based credit markets without directional risk to volatile crypto assets such as bitcoin.
The fund targets annual returns of 8 to 12 per cent and offers next-day liquidity. Its returns are generated through hundreds of collateralised lending markets in which crypto holders deposit assets and borrow stablecoins, paying interest. If collateral values fall, automated liquidation mechanisms reduce default risk.
The industry expects the stablecoin market to grow rapidly. Some 90 per cent of wealth managers anticipate rising institutional adoption over the next three years. Evidence of this shift is already apparent: BTG Pactual recently launched a dollar-backed stablecoin in Brazil, WisdomTree has secured a special licence to issue regulated digital tokens, and Deutsche Bank’s asset management arm, DWS, is preparing its own issuance.
Dramatic increase in stablecoin issuance anticipated
Over the next five years, 98 per cent of wealth managers expect asset managers to issue more stablecoins, with 42 per cent forecasting a “dramatic” increase. Their expectations around usage are similarly bullish: 96 per cent predict rising adoption for low-cost transactions and DeFi access, while 86 per cent expect greater use for yield strategies. Investment diversification (84 per cent) and liquidity management (82 per cent) are also set for expansion, according to respondents.
The survey reflects a broader institutional shift towards digital asset infrastructure that is regulated, yield-bearing and operationally efficient. Stablecoins, once overshadowed by more volatile cryptocurrencies, increasingly resemble a hybrid of cash, money-market funds and settlement rails.
For wealth managers navigating a higher-rate, higher-volatility world, that combination is proving difficult to ignore.
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