Whereas United States dollar-denominated stablecoins dominate the stablecoin and real-world asset (RWA) tokenization recreation, different opponents are coming into play, in accordance with Tether co-founder Reeve Collins.
Talking to Cointelegraph in Dubai, Collins mentioned that whereas USD-backed stablecoins could at the moment dominate, different currencies and belongings could compete to again stablecoins. He mentioned:
“The stablecoin undoubtedly helps protect the greenback dominance, particularly within the crypto house. The greenback is form of the reserve forex of crypto. However now there are different currencies coming into play. However extra importantly, it is not currencies. It is different varieties of backing.”
Collins mentioned that these different belongings used to again stablecoins could compete with US {dollars} by bringing the next yield to customers.
Tether co-founder says tokenized belongings can again stablecoins
Collins, who works bringing stablecoin yield for customers by way of Pi Protocol, advised Cointelegraph that aside from currencies, money-market funds, different commodities and gold may again stablecoins sooner or later.
“When you’ll be able to again it with cash market funds, as an example, that generate the next yield than T-bills and different issues like that which are coming onchain, the place there’s quite a lot of yield that will likely be generated. These will take priority,” Collins mentioned.
Collins mentioned these will “begin successful” as a result of they create larger person returns. Moreover, the chief additionally mentioned RWA tokenization may play a task in stablecoin backing.
The chief advised Cointelegraph that since all varieties of belongings might be tokenized, these can be utilized to again stablecoins sooner or later. “You’re going to have quite a lot of selections different than simply {dollars},” he added.
Associated: Tether boosts Juventus stake to 10% in latest strategic buy
Trump-linked stablecoin lays basis for the remainder of the world
In March, the World Liberty Monetary (WLFI) mission, backed by US President Donald Trump, launched its stablecoin on BNB Chain and Ethereum. Nonetheless, the mission mentioned that the tokens weren’t tradable but.
In keeping with Collins, the stablecoin entry of a Trump-backed mission signifies that stablecoins at the moment are “totally accepted.” The chief believes everybody will get entangled in stablecoins due to the transfer. This consists of establishments, governments and monetary know-how corporations.
“The President of america launched a stablecoin. It’s spectacular. It lays the muse for the remainder of the world to do it as effectively,” he mentioned.
Journal: Ethereum is destroying the competition in the $16.1T TradFi tokenization race
