Bitcoin (BTC) and stablecoins are likely to see very different adoption trajectories in the coming years.
Franklin Templeton's Head of Digital Assets, Roger Bayston, feels utility, rather than just price appreciation, is shaping how each asset is used.
Speaking on TheStreet Roundtable , Bayston said Bitcoin's role has evolved far beyond its original vision as a medium of exchange. It has positioned itself more firmly as a store-of-value asset, while stablecoins are increasingly filling the gaps it leaves behind.
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Bitcoin shifts from payments to store of value
Bayston noted that Bitcoin was initially designed to function similarly to today's stablecoins, as a tool to transmit value and pay for goods and services.
However, its long-term price appreciation has altered user behavior.
"As there's been a trajectory of going up in value, people are more concerned about holding on to Bitcoin than using it to buy cheeseburgers,"Bayston said.
Instead, investors now treat Bitcoin more like a digital commodity , allocating it alongside other store-of-value assets within portfolios.
"People's previous beliefs in trusted institutions have been chipped away from a number of different sources. And so we see an adoption by large and small investors in having a portion of their portfolio in these store of value type of constructs. And I think Bitcoin will continue to hold that place,"Bayston added.
In that context, Bitcoin has increasingly been viewed less as a transactional currency and more as a hedge or long-term asset.
Stablecoins step into utility role
While Bitcoin has gravitated toward a store-of-value asset, Bayston argued that stablecoins are better positioned to fulfill crypto's original payments use case.
Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to assets like the U.S. dollar or government bonds. They are commonly used for payments, trading, and transfers, offering the speed of crypto without the price volatility of traditional cryptocurrencies.
Unlike Bitcoin, stablecoins are not designed for capital appreciation, but for price stability and transactional efficiency.
Because of that design, stablecoins are well-suited for remittances, on-chain commerce, and cross-border payment settlements. These are areas where Bitcoin's volatility makes it ill-suited for payment purposes.
"Stablecoins, which are not really intended to be a capital growth asset, but to have massive utility, are going to be taking the place of what I think may be the original vision for Bitcoin to be able to do that,"Bayston said.
Read more about Stablecoin:
Lending and collateralization expand Bitcoin's role
Even as Bitcoin becomes less transactional, Bayston said its utility is still evolving, particularly in lending markets .
As Bitcoin holders look to unlock value without selling their assets, borrowing against crypto has become an expanding "niche."
Using Bitcoin and other digital assets as collateral for loans is gaining traction within private credit markets, Bayston said, allowing investors to access liquidity while maintaining exposure to long-term price appreciation.
He added that as the value of digital assets continues to grow, demand for asset-backed lending is likely to rise alongside it. This trend, Bayston suggested, represents another stage in crypto's maturation, one where different assets specialize rather than compete directly.
In that emerging landscape, Bitcoin and stablecoins may no longer be rivals, but complementary tools serving distinct roles in the digital financial system.
Related: JPMorgan to let clients use spot Bitcoin ETFs as loan collateral
This story was originally published by TheStreet on Jan 9, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
