What to Know
- Liquid Capital founder Yi Lihua says 2026 will mark large-scale financial adoption of blockchain
- Stablecoins grew from about $130B to over $300B in 2025, showing strong global demand
- Yi believes WLFI’s USD1 and Ethereum will be core infrastructure for future on-chain finance
Liquid Capital founder Yi Lihua believes the global financial system is about to enter a major transition. In a recent post on X, Yi said that 2026 will be the first year when financial institutions adopt blockchain technology at a large scale.
He revealed that Liquid Capital has taken a major position in ETH and a heavy position in WLFI, the project behind the USD1 stablecoin. He also noted that WLFI recently swapped Bitcoin for Ethereum. “Stablecoins and Ethereum are the most important infrastructure for financial on-chain systems,” Yi wrote.
Stablecoins Set for Explosive Growth
Trend Research agrees with Yi’s outlook and believes stablecoins are on the verge of rapid expansion. The research firm describes stablecoins as the most basic and largest blockchain application, with global use cases that go far beyond trading.
In 2025 alone, the total stablecoin market grew from about $130 billion to over $300 billion, more than doubling in size. Despite temporary market shocks, stablecoins quickly recovered and reached new highs. Analysts expect this growth to accelerate further as regulations become clearer and institutional confidence improves.
Regulation Clears the Path
One of the biggest drivers behind this trend is clearer regulation in the United States. New laws now define who can issue stablecoins, how reserves must be managed, and how transparency should be maintained. These rules require stablecoins to be backed one-to-one by real US dollar assets such as cash or short-term government bonds. This has reassured both users and institutions while also encouraging broader adoption.
Once regulation removes uncertainty, more companies and financial institutions will feel comfortable using stablecoins for real-world payments and settlements.
Tech and AI Companies Enter the Space
Major technology and payment companies are already testing stablecoins. Firms like PayPal, Stripe, and Visa have expanded stablecoin use into business payments, creator payouts, and everyday spending. Some platforms now allow users to pay merchants directly with stablecoins wherever card payments are accepted. Compared to traditional systems, these payments are faster, cheaper, and easier to use across borders.
In parallel, the rapid rise of artificial intelligence is creating new demand for instant and low-cost payments. As machines increasingly transact with each other, many believe blockchain-based money will become the default option.
Traditional financial institutions are also embracing blockchain technology. Large firms have begun issuing digital versions of bonds, funds, and government debt that settle instantly and operate around the clock. Experts believe this shift could bring trillions of dollars in traditional assets onto blockchains over the next decade.
WLFI and USD1’s Three Growth Paths
Yi outlined three main paths for WLFI and its USD1 stablecoin. First, USD1 will cross $10 billion in supply soon, reach $100 billion in the medium term, and eventually grow to a trillion-dollar scale in a global stablecoin market worth around $3 trillion.
Second, WLFI plans to work with large Web2 companies that already have over 100 million users. Stablecoin payments offer clear advantages over traditional card systems and could bring billions of users into blockchain-based finance. Third, in a future financial system worth tens of trillions of dollars, USD1 can become one of the most important building blocks by combining strong compliance, brand trust, business adoption, and user growth. “This is why we are heavily invested in ETH and WLFI,” Yi said, signalling Liquid Capital’s long-term confidence in stablecoins as the backbone of on-chain finance in 2026 and beyond.
Final Thoughts
Yi Lihua’s comments reflect a growing belief across crypto, tech, and traditional finance that stablecoins are moving from experiments to essential financial tools. With clearer regulation, rising institutional interest, and real-world payment use cases, stablecoins are increasingly seen as the bridge between today’s financial system and a blockchain-based future.
