Curve Finance founder Michael Egorov has outlined his vision for stablecoins in 2026, predicting that the digital assets will increasingly function as core financial infrastructure rather than merely a cryptocurrency niche. According to Egorov, the coming year will focus on determining what role stablecoins will play in the global financial system and which entities will drive their mainstream adoption. This shift comes as regulatory frameworks become clearer and on-chain liquidity matures to support genuine economic activity.
Throughout 2025, stablecoins demonstrated behavior more consistent with financial plumbing than a speculative crypto category, Egorov noted. The introduction of regulatory frameworks like the U.S. GENIUS Act has provided greater clarity, while usage has steadily expanded. The market has grown more grounded, with the total stablecoin market cap surpassing $300 billion by the end of 2025, according to data from DeFiLlama.
Stablecoin Adoption Growing From Bottom Up
Contrary to common assumptions, stablecoin adoption is not being primarily driven by traditional banks, Egorov explained. Instead, usage is expanding from the outside through fintech products and crypto-native payment tools. Platforms like Monerium and ether.fi already rely on stablecoins as their settlement layer, enabling faster and more convenient payments compared to traditional rails.
However, banks are increasingly paying attention to this growing market. The Curve founder emphasized that financial institutions are reacting to existing demand rather than creating it. This pattern suggests that stablecoin adoption is driven by real user utility rather than institutional mandates, a trend Egorov expects to continue throughout 2026.
Dual Functions Emerge in Stablecoin Ecosystem
As the market matures, the stablecoin ecosystem is developing two complementary functions, according to Egorov. Redeemable stablecoins serve payment needs, integrating with cards, merchant systems, and fintech applications for consumer-facing activities. Meanwhile, fully decentralized stablecoins power on-chain finance, enabling smart contracts, automated settlements, derivatives, and decentralized lending without intermediaries.
Additionally, both models provide essential value in their respective domains. Consumer-facing stablecoins expand usage among general audiences, while decentralized counterparts provide the programmable foundation that makes the system operational. Together, these two aspects create a comprehensive infrastructure for digital finance.
Institutional Experimentation Accelerating
Egorov anticipates that institutional experimentation with stablecoins will accelerate in 2026, though much of this activity may occur behind the scenes. Market data from Fireblocks shows that numerous banks are already integrating stablecoins internally, while others explore stablecoin-like settlement instruments for interbank use. Central banks, particularly in Europe, are experimenting with wholesale CBDC models focused on settlement rather than consumer payments.
If these systems eventually operate on public blockchain infrastructure, the implications could be significant. This would mean portions of the global financial system would rely on open, programmable rails rather than closed correspondent networks. This structural change may not be immediately visible to consumers but could fundamentally alter how value moves through the financial system.
Security and Consolidation Define Key Challenges
The Curve founder identified security as a critical concern for 2026, noting that hackers continuously improve their capabilities and increasingly deploy AI in sophisticated attacks. Many protocols will face aggressive testing, and some will inevitably fail. Teams that invest in rigorous development and proper testing will have better odds of withstanding these pressures, Egorov stated.
Meanwhile, consolidation is reshaping the blockchain landscape as major networks like Ethereum and Solana scale effectively. Liquidity and developers are becoming more selective, concentrating activity around a smaller number of proven ecosystems. This makes 2026 a challenging year for launching new chains without clear differentiation, according to the protocol founder.
In contrast to viewing consolidation negatively, Egorov characterizes this shift as the industry maturing to its next evolutionary stage. The infrastructure is solidifying around systems that have consistently demonstrated the ability to operate at scale. As stablecoins expand their role in global finance, security and reliable execution become paramount considerations.
Infrastructure Layer Rather Than Bank Replacement
Despite some market hype, Egorov does not expect stablecoins to replace traditional banks. Instead, they will play a more fundamental role by transforming how money moves through faster settlement, programmability, and default global availability. This represents a shift in financial infrastructure rather than a wholesale replacement of existing institutions.
By the end of 2026, Egorov expects the broader world to view stablecoins as an assumed layer of financial infrastructure. The primary focus will likely shift from whether stablecoins belong in the financial system to how builders can develop solutions on top of this emerging foundation, with this transformation already underway across the digital finance sector.