A comprehensive survey conducted by EY-Parthenon and Coinbase, involving 351 institutional investors, reveals a dramatic shift in stablecoin preference among institutions. The data, comparing January 2025 to January 2026, shows that USDC is now used or held by 86% of respondents, a massive increase from 55% the previous year. In contrast, USDT usage grew from 57% to 68%, leaving it 18 percentage points behind USDC in the January 2026 reading.
The geographic divide is stark: U.S. stablecoin investors are far more likely to hold USDC (94%) compared to an average of 69% in non-U.S. regions. This split explains a significant portion of the institutional gap, as USDT's global market cap dominance is largely driven by retail and emerging market adoption outside the United States.
The report attributes USDC's institutional victory to its stronger positioning for compliance with the anticipated GENIUS Act, the Senate's stablecoin legislation which recently reached an agreement in principle. USDC, issued by Circle under U.S. regulatory oversight with transparent reserves and regular audits, is structurally aligned with the expected requirements. Tether, operating under different oversight with a historically less transparent reserve structure, creates hesitation among compliance-sensitive institutions.
Separately, Ripple's 2026 Digital Asset Survey of over 1,000 finance executives underscores the broader institutional shift. 72% of institutions now believe offering digital asset solutions is necessary to remain competitive. Stablecoins are a key focus, with 74% of executives viewing them as tools to unlock trapped working capital and improve treasury operations. The market is moving from debate to execution, with institutions prioritizing security, regulatory clarity, and integrated platforms that combine custody, compliance, and operational tools.
The EY-Parthenon survey also details how stablecoins are actively reshaping institutional frameworks: 60% report an increased focus on counterparty and custody risk, 56% introduced new liquidity management considerations, and 49% are encouraged toward 24-hour or cross-asset settlement capabilities. Only 8% reported no significant impact, indicating stablecoins are a transformative force in institutional finance.
