How Stablecoins, Institutions & AI Are Driving Web3’s Next Chapter

Over the past few years, a combination of technological innovation and favorable regulatory changes has ushered in a new era for cryptocurrencies and blockchain. The $4 trillion blockchain economy is no longer just a place for speculation, it is rapidly becoming integrated into the mainstream global financial system.

Amid this increasing mainstream adoption, there is an increasing focus for the cryptocurrency industry on security, compliance, and user protection. A strong signal came from Binance this year, when it became the first company in the world to obtain ISO/IEC 42001 certification – the global standard for trustworthy AI management systems.

newly, Binance Jimmy Su, Chief Security Officer, described this achievement: “At Binance, achieving ISO/IEC 42001 certification represents a significant milestone in our unwavering commitment to driving safe and responsible AI. As the world’s first global standard for AI management systems, it validates our rigorous frameworks for ethical development, bias detection, transparency, and full compliance with EU AI law – protecting users and ecosystems alike. This achievement is not just a badge of excellence, it is a testament to our efforts. Proactive Stance Against evolving AI risks, ensuring every innovation is built on trust and accountability. I’m very proud of our global teams whose expertise and collaboration make this possible. Looking ahead, Binance will continue to lead the charge in trustworthy AI, enabling the cryptocurrency industry to securely thrive in an AI-driven future.

From financial technology companies such as PayPal and Block Inc., to traditional financial services companies like Visa and Citibank, are entering the cryptocurrency space in droves.

This has been fueled by the emergence of regulatory clarity, especially in the United States, thanks to the signing of the GENIUS Act into law last summer. Regulatory clarity has also emerged in other jurisdictions, such as the European Union (EU), where the Markets in Regulatory for Cryptoassets Act (MiCA) was signed into law and implemented.

While the above companies are largely focused on mainstreaming cryptocurrency-based payments, other esteemed institutions are moving significantly toward the asset management end of the cryptocurrency economy. Asset managers like BlackRock have gotten into the exchange-traded fund (ETF) business, with the Wall Street giant launching ETFs like the iShares Bitcoin Trust (IBIT).

As using Stablecoins becomes a cheaper and less complicated way to send money around the world, major payment processing companies and other institutions are now embracing their use as an alternative to traditional ACH transactions and wire transfers.

Companies like Visa have begun using Stablecoins for payment settlement purposes, with the popular payment processor now offering such services across four different cryptocurrency pools.

The emergence of stablecoins is linked to the trend of asset tokenization. This is another area that large asset management firms, such as BlackRock, have entered, alongside traditional financial services companies like them JPMorgan Chase.

With the rapid rise of institutional demand for tokenized assets, the total value of tokenized real assets (RWAs) has also increased at a rapid pace. To date, the total value of these assets amounts to approximately $36 billion.

It’s not just traditional industries like financial services that are converging on the cryptocurrency economy. The field of AI may still be in its infancy, but since the phrase “generative AI” entered the public lexicon following the launch of ChatGPT in late 2022, cryptocurrencies have emerged as a potential solution to the AI ​​problem. Several “weak points” limit the mainstream expansion of AI.

These vulnerabilities include verification systems, monetization of AI agents, and IP licensing. Blockchain technology, designed to be decentralized in nature, can also help balance the scales, to prevent AI from being dominated by big tech.

While the future has yet to unfold, through these different trends, we can get a general idea of ​​the next chapter for the industry, and its relationship to the mainstream economy. In the coming years, “old school” financial services companies are expected to continue their shift towards cryptocurrencies.

At the same time, crypto-native institutions can further benefit from increased institutional capital inflows. It is possible that global payments will become more dependent on stablecoin technology, while further adoption of artificial intelligence may hinge on its convergence with blockchain technology.