While the US dollar-denomined stableecoins dominate stableecoin and Real-World Asset (RWA) tokenization games, other competitors come into play, according to Tether-co-founder Reeve Collins.
In a speech with CointeleGraph in Dubai, Collins said that although USD-supported stablecoins are currently dominating, other currencies and assets can compete to support stablecoins. He said:
“StableCOin definitely helps to preserve the dollar dominance, especially in the crypto area. The dollar is a kind of reserve currency for crypto. But now there are other currencies that come into play. But more importantly, it’s not currencies. These are other types of back.”
Collins said these other assets used to support stableecoins can compete with US dollars by bringing a higher dividend to users.
Tether-Med Founder says tokenized assets can support stableecoins
Collins, working on bringing stablecoin yield for users through PI protocol, CointeleGraph said that apart from currencies, money market funds, other raw materials and gold could support stableecoins in the future.
“For example, when you can back up it with money market funds that generate a higher yield than T-bills and other things like what comes onchain, where there is a lot of benefits that will be generated. These will take precedence,” Collins said.
Collins said these will “start winning” because they bring higher user returns. Furthermore, the executive also said that RWA tookenization could play a role in stablecoin support.
The director told Cointelegraph that since all types of assets can be tokenized, these can be used to support stablecoins in the future. “You want many choices other than just dollars,” he added.
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Trump-bound stableecoin lays foundation for the rest of the world
In March, the World Liberty Financial (WLFI) project launched supported by US President Donald Trump, his stableecoin on the BNB chain and Ethereum. However, the project said the symbols were not careful yet.
According to Collins, the StableCOin input of a Trump-backed project means that stablecoins are now “fully accepted.” The director believes that everyone will be involved in stableecoins because of the move. This includes institutions, governments and financial technology companies.
“The president of the United States launched a stableecoin. It’s impressive. It lays the basis for the rest of the world to do so too,” he said.
https://www.youtube.com/watch?v=sumyysrjvzm
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