Wealth Managers Increasingly Focus on Stablecoin Opportunities, Finds Global Study

A global study by Brava Finance shows that 94% of wealth managers have invested in stablecoins, with 96% predicting increased use for DeFi and low-cost transactions. Key use cases include portfolio diversification, yield generation, and parking funds in volatile markets. Brava Finance’s Cayman-regulated credit fund offers secure, professional access to stablecoin-based lending, targeting 8%-12% annual returns.

Wealth Managers Increasingly Focus on Stablecoin Opportunities

A new global study by Brava Finance reveals that stablecoins are becoming an integral part of wealth managers’ investment strategies, with 94% of them already investing in stablecoins. These digital assets, used for making payments and within investment strategies, are expected to see further growth as wealth managers identify various strategic benefits.

Wealth managers embrace stablecoins

According to the study, conducted by Brava Finance, 88% of wealth managers report having a good understanding of stablecoins, with 16% describing their knowledge as excellent. This strong grasp of stablecoins has led to their increased adoption in wealth management. The research involved wealth managers from 13 countries, including the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland, and Hong Kong, with all respondents indicating they are developing or have developed strategies around stablecoin investments.

Stablecoins are primarily being used for their ability to provide fast and low-cost transactions, with 74% of wealth managers highlighting this as the key use case. Other important uses include gaining access to decentralised finance (DeFi) opportunities (72%), portfolio diversification (66%), and parking funds in volatile markets (66%).

Brava Finance’s platform, which helps users access stablecoin-based credit strategies via DeFi, has launched its Stablecoin SMA and first credit fund. This fund, available through a regulated Cayman vehicle, allows institutional-grade access, leveraging leading custody solutions such as Fireblocks and Northern Trust.

Institutional adoption of stablecoins on the rise

The survey also indicates a growing trend towards stablecoin adoption by institutional investors. Around 90% of wealth managers predict that institutional usage of stablecoins will increase over the next three years. Notably, the launch of stablecoins by asset managers such as BTG Pactual in Brazil and Wisdom Tree’s special licence to issue stablecoins further signifies this shift. Deutsche Bank’s Asset Management arm, DWS, also plans to launch its own stablecoin this year, highlighting the growing interest among financial institutions in these digital assets.

Looking ahead, 98% of wealth managers expect increased issuance of stablecoins by asset managers over the next five years, with 42% forecasting a dramatic rise. These digital assets are anticipated to play a significant role in various investment strategies, particularly in DeFi and for fast, low-cost transactions.

Future of stablecoins in wealth management

The study found that 96% of wealth managers believe stablecoins will be increasingly used for accessing DeFi and for making fast, low-cost transactions. Additionally, 86% anticipate stablecoins will see growing use for yield generation, 84% for investment diversification, and 82% for parking funds in volatile markets.

Graham Cooke, CEO and Founder of Brava Finance, stated: “Wealth managers have identified that digital assets such as stablecoins offer them strategic and tactical opportunities within decentralised finance. They are now seeking to build digital asset strategies that will help them streamline and remove friction and costs from some of their processes to deliver a diversified source of yield and improve risk-adjusted returns for their clients.”

Brava Finance’s first fund

Brava Finance’s first fund is a Cayman-regulated credit fund designed to provide secure, professional access to crypto markets without the volatility typically associated with cryptocurrencies. The fund, built entirely on Brava’s on-chain stablecoin credit and risk infrastructure, targets annual returns of 8% to 12% and offers next-day liquidity. The fund is fully diversified, institutionally structured, and has no exposure to volatile assets like Bitcoin.

The returns from the fund are powered by blockchain-based collateralised lending markets, which are akin to Lombard loans in traditional finance. Crypto holders, such as Bitcoin owners, deposit their assets into smart contracts and borrow stablecoins against them, paying interest. In cases where the loan-to-value ratio becomes risky, the system automatically liquidates collateral, thereby eliminating the risk of default.

About Brava Finance

Brava Finance is a non-custodial stablecoin management platform that provides institutional and sophisticated investors with access to DeFi yield opportunities through risk-adjusted strategies. Built on SAFE infrastructure, which secures over $53 billion in assets, and protected by comprehensive Nexus Mutual coverage, the platform delivers automated portfolio management with integrated risk controls.

As global markets move towards tokenised assets, Brava Finance addresses the need for sophisticated tools that allow institutional investors to access digital yield efficiently and securely. The platform makes DeFi accessible and institutional-grade, eliminating common barriers such as wallet management and operational complexity.

Brava Finance’s AI-powered platform automates complex blockchain operations, enabling institutions to deploy capital into DeFi with confidence and security.