Almost nine out of 10 (88%) wealth managers say they have a good or better understanding of stablecoins – a digital asset used for making payments or within investment strategies – with 16% saying their knowledge is excellent, new global research* from Brava Finance, the non-custodial stablecoin management platform, shows.
Its study with wealth managers in 13 countries, found more than nine out of 10 (94%) have already invested in stablecoins and of those 94% are using stablecoins to generate a yield.
All wealth managers questioned in the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland and Hong Kong say they are developing a strategy about how to invest in stablecoins and what to use them for. Around 36% already have a strategy in place.
The most important use cases for stablecoins identified by 74% of wealth managers, is for fast, low cost transactions, the research found.
Other primary uses include gaining access to decentralised finance (DeFi) opportunities (72%), portfolio diversification (66%), parking funds in volatile markets (66%), and generating yields from lending protocols (22%).
Brava Finance, whose platform helps users access stablecoin-based credit strategies through decentralized finance (DeFi), has launched its Stablecoin SMA and first credit fund, which offers institutional-grade access via a regulated Cayman vehicle. The fund employs leading custody solutions such as Fireblocks and Northern Trust.
Around 90% of wealth managers questioned say institutional investors use of stablecoins will increase over the next three years.
The launch of BTG Pactual’s $1 stablecoin in Brazil, Wisdom Tree’s special licence to issue and the intention of Deutsche Bank’s Asset Management arm, DWS, to launch this year is evidence that asset managers plan to launch their own stablecoins.
Over the next five years, 98% of wealth managers say they expect to see increased issuance of by asset managers, with 42% saying there will be a dramatic increase.
When asked how institutional investors’ use of stablecoins will change over the next three years, 96% say their use for accessing DeFI and for fast and low cost transactions will increase..
The wealth managers questioned say they anticipate increase in the use in all other categories, including investing for yield (86%), investment diversification (84%), and parking of funds (82%).
Graham Cooke, CEO and Founder at Brava Finance , said: “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 is a Cayman-regulated credit fund designed to offer secure, professional access to crypto markets without the volatility. It is built entirely on Brava’s on-chain stablecoin credit & risk infrastructure.
It targets 8% to 12% annual returns, offers next day liquidity, is fully diversified and institutionally structured with no directional exposure to Bitcoin or other volatile assets.
Returns are powered by 100s of established blockchain-based collateralized lending markets—similar 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. If their loan-to-value ratio becomes risky, the system automatically and orderly liquidates collateral—eliminating default risk.
