Global research from Brava Finance with institutional investors and wealth managers who are already investing in digital assets, shows they are most likely to use stablecoins to access DeFi opportunities.
The study by the non-custodial stablecoin management platform found 78% of participants use stablecoin to access decentralised finance (DeFi) opportunities.
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.
Its research in the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland and Hong Kong found two-thirds of institutional investors and wealth managers say they invest in stablecoins for portfolio diversification.
More than six out of 10 (62%) use them in order to park funds in volatile markets while 61% use them for fast and low-cost transactions. More than one-third (35%) use them to generate yield from lending protocols.
Unlike typical cryptocurrencies such as Bitcoin and Ethereum, stablecoins are pegged to stable assets like the US dollar or other fiat currencies. This peg reduces price volatility, making stablecoins a safer digital cash option within crypto portfolios or trading strategies.
Nearly all (99%) respondents surveyed agree that stablecoins pegged to the US dollar are the most attractive for institutional investors today.
After a flurry of stablecoin launches by fund managers worldwide, 27% of investors say this trend will increase dramatically in the next five years, while more than two-thirds (68%) say it will increase slightly.
Graham Cooke, CEO and Founder at Brava Finance, said: “We are witnessing a major evolution in the financial system as an ever-greater number of fund managers launch their own stablecoins, making the market more liquid, interoperable and accessible to both retail and institutional investors.
“As our research makes clear, stablecoins can be a valuable addition to a portfolio bringing diversification and yield as well as access to DeFi opportunities.”
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.
