Institutional adoption of digital cash is gaining momentum, marking what BNY Mellon describes as a major structural shift in global finance. The bank projects that the combined market for stablecoins, tokenized deposits, and digital money-market funds (MMFs) could reach $3.6 trillion by 2030. Stablecoins are expected to account for about 41.6% of that total, with tokenized deposits and digital MMFs making up the remainder.
In brief
- •Stablecoins expected to hit $1.5T by 2030 as institutions seek faster settlement and tighter liquidity control.
- •Tokenized deposits streamline fund movement, reduce errors, and elevate visibility for major financial operations.
- •Digital MMFs help firms shift capital in seconds, improving margin posting and real-time cash management.
- •Clearer global regulations support rising institutional confidence in blockchain-based financial tools.
BNY Mellon reports that more institutions are using stablecoins for high-value transfers, which settle in minutes rather than days, giving firms greater control over liquidity and helping them avoid delays common in traditional processing. The bank expects stablecoins alone to reach roughly $1.5 trillion by 2030 as adoption spreads across financial services.
Tokenized deposits and digital money-market funds are also gaining traction among institutional investors. BNY Mellon projects these assets will reach about $2.1 trillion in value by the end of the decade. Firms view tokenized deposits as a practical upgrade to traditional accounts because they enable faster fund movement, reduce reconciliation errors, and improve visibility.
Meanwhile, tokenized MMFs allow institutions to shift capital across accounts, markets, or products in near real time, helping them manage cash positions with greater precision. Pension funds, for instance, could post derivatives margins within seconds, rather than waiting hours or days for transfers to clear. Faster movement enables institutions to respond quickly to market conditions and capture opportunities that might otherwise pass.
Digital Cash Reshaping Core Institutional Workflows
A key advantage of stablecoins and tokenized cash is the reduced counterparty risk involved in settlement. Digital transfers reduce the likelihood that one party fails to deliver funds or assets on time, thereby decreasing operational risk throughout the trade cycle. Institutions that frequently move money regard this as a significant improvement over older systems.
Several structural factors are driving this adoption wave:
- •Faster settlement reduces funding and reconciliation delays.
- •Digital records improve traceability across large transaction flows.
- •Reduced manual processing lowers operational risk.
- •Real-time transfers strengthen liquidity control.
- •Easier fund movement supports flexible investment activity.
BNY Mellon, which oversees more than $53 trillion in assets under custody and administration, anticipates that these advances will transform day-to-day institutional finance. As more firms adopt digital cash, transaction cycles shorten, reporting becomes clearer, and capital moves more efficiently across borders.
Clearer Compliance Standards Drive Rising Institutional Interest in Digital Cash
Regulations in the United States, Europe, and Asia are developing in parallel. This growing clarity enables institutions to utilise digital tools without incurring unnecessary legal risk. Legislation, such as the EU’s Markets in Crypto-Assets (MiCA), establishes standards for the operation of digital currencies and related assets.
Policymakers in the United States and Asia are pursuing similar guidelines aimed at protecting investors and establishing consistent rules for issuers and service providers. Without such frameworks, many firms would hesitate to commit significant sums to tokenized cash systems.
BNY Mellon emphasizes that blockchain-based tools will complement, not replace, existing financial infrastructure. Blockchains can record transactions transparently and verifiably, providing firms with reliable data for audits, reporting, and internal controls. Greater certainty in transaction records helps reduce errors and improve overall processing quality.
Carolyn Weinberg, Chief Product and Innovation Officer at BNY Mellon, noted that integrating current financial rails with blockchain systems will help firms strengthen operations and open new investment channels.
Adoption momentum continues to build as organizations recognize the practical benefits of digital cash. Faster settlement, easier tracking, and lower operational risk provide institutions with greater control over their funds. With regulatory clarity advancing and institutional use expanding, BNY Mellon’s $3.6 trillion projection for 2030 appears increasingly realistic.