Stablecoin competition in crypto currency markets is increasing and the regulations in the United States on the agenda, traditional financial institutions showed more interest in this field said. Bitgo’s Stablecoin Director Ben Reynolds said that the concern of traditional banks to lose their superiority against digital currencies is effective on the basis of this tendency. Reynolds, Toronto’da Consensus 2025 event in a statement, Bitgo’s recently launched “Stablecoin-AS-A-A-Service” service has attracted great interest from the US and foreign banks.
Concerns of Banks and Institutions
Ben Reynolds, in his speech at the panel, said that many banks are hesitant to leave behind in the field of stablecoin and that they are trying to stay in the market. It is said that banks do not want to face the risk of losing deposits in the face of digital dollars in the future. For this reason, classical financial institutions are conveyed that they are thinking of tokenizing their deposits or going to stablecoin.
Although the return types of stablecoins and the money market funds to the token have recently been growing seriously, it is still a small part of the $ 230 billion stablecoin market. According to the evaluations transferred in the panel, in addition to the expected potential of the stablecoins offering returns, the main area of use is more ease of payment and transaction.
New usage areas and regulation effect
Sam Broner of A16z company said that stablecoins offering returns offer more practicality than investment returns in areas used for expenditures and transactions. Boner, stablecoins payments and transfers for users in the form of accessibility for users, “he said.
Sam Broner: “There is not much to be done with shares in the money market fund. Locking times, swaps during working hours and manual contract examination. Crypto provides programmable and unauthorized flexibility.”
Blackrock Crypto Product Strategist Matt Kunke pointed to the advantages of returns to institutions for institutions, and said that speed and efficiency in financial transactions are an important charm in this field. It was emphasized that inter -institutional asset transfers encounter less obstacles and may be effective in choosing stablecoins.
Matt Kunke: “If you are a DAO, a protocol or market, to act between your crypto assets on the stock market and your intermediary institution account, slow and compelling. Stablecoins that offer return reduce this friction.”
The role of regulation and expansion potential for access
It was underlined that the rules of regulating the future of stablecoins in the markets will determine. Matt Kunke, tokenized treasury funds as securities, stablecoins are evaluated in a different category, he said. Accordingly, these assets are expected to be traded in different markets.
Joseph Saldana, the Wyoming Stable Token Commission, pointed out that tokens that offer return can increase the access of investors according to traditional funds. Saldana said that the minimum investment amounts found in traditional funds exclude many people.
Joseph Saldana: uz We want to reach those who cannot receive banking services and provide wider access to the financial vehicles that we all use daily. ”
The boundaries between traditional financial institutions and digital assets can be reshaped by the spread of stablecoins and the influence of regulations. Financial institutions focus on adapting stablecoin and similar assets quickly to protect their competitiveness in the field of digital assets. Increased return on return potential and accessibility of stablecoins can bring more transformations in the financial markets in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
