Most institutional clients focus on Bitcoin’s store-of-value role, while stablecoins continue to dominate real-world payment use cases.
BlackRock’s head of digital assets says institutional investors are not basing their Bitcoin exposure on the expectation that it will become a global payment currency anytime soon. While the asset continues to gain traction for long-term storage and portfolio diversification, its potential use in everyday transactions remains a secondary — and highly speculative — consideration.
Bitcoin’s Payment Potential Seen as ‘Upside, Not the Thesis’
Robbie Mitchnick, who leads digital asset strategy at BlackRock, said that most clients are not underwriting Bitcoin as a global payment network when making investment decisions. Instead, they emphasize its role as a store of value.
Mitchnick noted, “For us, and for most of our clients, the global payment use case is out-of-the-money-option-value upside.” He added that while Bitcoin could eventually see broader payment adoption, that path remains speculative and would require major technological advances.
He explained that “a lot needs to happen in terms of Bitcoin scaling, Lightning, and other tools to make that possible.” Research from industry analysts has similarly highlighted sustainability concerns around certain Bitcoin layer-2 designs, including rollups.
Stablecoins Take the Lead in Real-World Payments
While Bitcoin’s payment future remains uncertain, Mitchnick said stablecoins have already achieved massive success in the payments sector.
He emphasized that “stablecoins have massive product-market fit as a payment instrument, efficiently moving value across borders and platforms.”
Mitchnick added that stablecoins are expanding far beyond crypto trading and DeFi, with applications in retail remittances, multinational corporate transfers, and settlement processes.
Industry leaders share this outlook. Some analysts suggest stablecoins are scaling faster than expected, influencing long-term Bitcoin forecasts. One major investment executive recently reduced a 2030 Bitcoin price target partly due to stablecoins absorbing use cases once expected to belong to Bitcoin.
Bitcoin Still Has a Niche in Remittances
Mitchnick acknowledged that Bitcoin could compete in retail remittance payments, though he described it as still a “speculative” scenario. Adoption depends heavily on future improvements in efficiency, speed and cost.
Industry builders expect rapid evolution across payment rails. A leading stablecoin pioneer recently predicted that “all currency” could become stablecoins by 2030, reflecting a broader move toward onchain finance.
The message from BlackRock is clear: while Bitcoin continues to thrive as digital gold, its payment utility is seen as a long-term possibility rather than a present reality. As the market evolves, stablecoins appear to be shaping the future of global transactions far faster than Bitcoin itself.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.