ICMA publishes new paper on stablecoins in capital markets
20 January 2026 The International Capital Market Association (ICMA) today publishes a new paper examining whether stablecoins represent a credible development for capital markets infrastructure, or a diversion from more established solutions.
The paper places recent growth in stablecoins in context, noting their rapid expansion alongside accelerating regulatory attention across major jurisdictions. While definitions and supervisory approaches differ, regulators are increasingly converging around core principles on reserves, redemption, safeguarding, and the prohibition of interest, with fragmentation remaining a central systemic risk.
From a capital markets perspective, the analysis focuses on the practical role of fiat-backed stablecoins as potential on-chain settlement assets, alongside wholesale CBDCs and tokenised bank liabilities.
The paper assesses where stablecoins may offer advantages, particularly in enabling programmable, 24/7 settlement and liquidity outside traditional cycles, while also highlighting material constraints.
These include regulatory limits on volumes and use cases, the absence of credit and interest, custody and technology risks, and operational costs linked to public blockchains.
Drawing on recent market initiatives and ICMA-led work under Project Guardian, the paper concludes that while stablecoins are unlikely to be a universal solution, they could play a complementary role in future market infrastructure if regulatory clarity improves and cross-border alignment deepens.
The paper is intended to inform ongoing discussions among issuers, intermediaries, investors, and policymakers on the evolution of digital settlement in capital markets.
Download the paper here.
