Global research from Brava Finance with institutional investors and wealth managers who are already investing in digital assets, shows nearly half (47 per cent) already have a stablecoin strategy while 52 per cent are developing one as interest in the sector surges.
The research from the non-custodial stablecoin management platform found almost all the institutional investors and wealth mangers (95 per cent) who are already investing in stablecoins say the asset class is generating a yield.
Brava Finance, whose platform helps users access stablecoin-based credit strategies through decentralised finance (DeFi), has launched its Stablecoin SMA and first credit fund, whichoffers institutional-grade access via a regulated Cayman vehicle. The fund employs leading custody solutions such as Fireblocks and Northern Trust. Its study in the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland and Hong Kong found around 18 per cent of investors and wealth managers say their understanding of stablecoins is excellent while 71 per cent say it is good and 11 per cent say it is average.
Looking to the next three years, almost nine out of ten (89 per cent) say the institutional use of stablecoins will increase, with 8 per cent expecting a dramatic increase. Just over one in 10 (11 per cent) say the use of stablecoins by institutional investors will remain the same.
Graham Cooke, CEO and Founder at Brava Finance, says: “Stablecoins are already a trusted component of many professional investors’ portfolios, and our research shows the cryptocurrency will continue to take an even bigger role in investment strategies before the end of the decade.
“Stablecoins offer a unique combination of stability, liquidity and access to digital financial markets, and because they are pegged to fiat currencies like the US dollar, they can provide a safe zone during times of market turbulence.”
