State of Stablecoins 2026: Architecture, Power, and Risk

How stablecoins are rewriting global financial architecture. In this solo episode of Bitcoin, Fiat & Rock’n’Roll, co-host Michael Blaschke steps away from the usual interview format to unpack a topic that is rapidly moving from crypto niche to systemic relevance: stablecoins. The episode is built around his newly published study with the FERI Cognitive Finance Institute, “Stablecoins: How Tokenized Money is Changing the Global Financial Architecture,” co-authored with Dr. Heinz-Werner Rapp. This is not a hype-driven discussion about token prices. It is a deep dive into the monetary layer of the token economy: why tokenized assets need tokenized money, why stablecoins are emerging as the dominant settlement instrument, and why this shift matters for banks, regulators, corporates and policymakers. Michael introduces the study’s two-pillar model: tokenized assets on one side, tokenized money on the other. He explains why a digital bond or tokenized fund remains incomplete if settlement still depends on slow legacy payment rails, limited business hours and correspondent banking chains. Stablecoins, in this view, are not just another crypto asset. They are the missing monetary infrastructure. The episode also explores the scale of the market, the role of stablecoins in US Treasury demand, the geopolitical implications of dollar dominance, and the widening gap between Europe’s regulatory leadership and America’s strategic push. Michael examines the core risks institutions need to understand: depegs, reserve quality, intermediary fragility, regulatory shocks and run dynamics in 24/7 markets. A major focus is Europe’s response under MiCA, including euro-denominated initiatives such as AllUnity and the Kivalis consortium. Looking ahead, the episode also connects stablecoins with the rise of agentic AI, asking what happens when autonomous systems begin to rely on programmable, always-on digital money. This is a dense but practical episode for anyone working in institutional DLT, treasury, payments, compliance, digital assets or financial infrastructure. If you want to understand how tokenized money could reshape global finance, this is the episode to start with. Blaschke & Rapp (2026) — "Stablecoins: How Tokenized Money Is Changing the Global Financial Architecture," published by the FERI Cognitive Finance Institute (the study that the episode is built around). FERI Cognitive Finance Institute press release Michael Blaschke on LinkedIn Bitcoin, Fiat & Rock’n’Roll Website Bitcoin, Fiat & Rock’n’Roll Telegram Channel Brunnermeier & Niepelt (2019) — Referenced for the argument that private and public money can be economically equivalent, but only under specific conditions (equivalence breaks down when trust in the private issuer erodes). Lyons & Viswanath-Natraj (2020) — Analyzed the stablecoin peg mechanism and compared arbitrageurs to authorized participants in the ETF market. Gorton & Zhang (Yale) — Compared bond-based stablecoins (Tether, Circle) to the Wildcat Banks of 19th-century America, i.e., private money issuers backed by reserves with historically mixed results. Ahmed & Aldasoro (BIS working paper, 2026) — "Stablecoins and Safe Asset Prices" — Empirically demonstrated that stablecoin inflows depress three-month US Treasury bill yields by 2.5 to 3.5 basis points (5 to 8 basis points during tight supply periods). Diamond & Dybvig (1983) — The classic bank run model showing that coordinated withdrawals can be individually rational even when the institution is fundamentally solvent; applied by Michael to the stablecoin context. Relai*: Buy Bitcoin with Relai—you can do a one-time purchase or savings plan: Click here. Use the referral code "ROCK" to reduce transaction fees by 0.1% while supporting Bitcoin, Fiat & Rock’n’Roll. Value4Value Podcast Streaming: Support our podcast by listening to our episodes on the Fountain Podcast App. This way, if you wish, you can support us "Value4Value" while listening to the podcast. You can find us on the Fountain Podcast App here: Click here Disclaimer: The content of this podcast reflects the private opinions of the hosts, serves exclusively for general information purposes and does not constitute investment advice. Always remember: Do your own research—inform yourself before making any investment decisions, such as buying Bitcoin. First try to understand what Bitcoin is and how to store it. This podcast does not provide financial advice. Note that the co-hosts might be invested in crypto assets. Read more on our website: Click here All links marked with "*" are affiliate links. If you use these links for purchase, the podcast receives a small share of the revenue without any additional costs to you. On the contrary, affiliate links often include discount promotions, so you can even save money. We would appreciate it if you use these links to support us. Thank you very much!