The post US crypto leadership: The focus is on stablecoins appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. A study by Lambis Dionysopoulos and Andrew Urquhart highlights the history, growth, and importance of stablecoins since they were launched 10 years ago as both a medium of exchange and a store of value, particularly in regions with monetary instability and/or limited access to the US dollar. The study details the use of stablecoins by businesses, financial institutions, and individuals for international cross-border payments, liquidity management, and protection against currency fluctuations in a swifter, more cost-effective way compared to those of traditional financial systems. According to this study, the accelerated adoption of stablecoins across the world is impacting the digital asset ecosystem as well as the financial system as a whole. There are hundreds of different types of stablecoins in circulation, with the majority issued by Tether (USDT), followed by Circle USDC (USDC). These stablecoins derive their value through various mechanisms. Four categories of stablecoins/tokens are backed by real-world assets such as fiat, commodity, treasury bill, or digital assets, which are pegged to the value of traditional/fiat currencies, commodities, T-Bills or repos, or digital assets with varying degrees of collateral requirements. algorithmic stablecoins, on the other hand are backed by programmed trading mechanisms without relying on direct collateral. These models face challenges in maintaining long-term stability, as seen with the collapse of TerraUSD in 2022, according to a recent report titled “Stablecoins 101: Behind crypto’s most popular asset,” published on December 11, 2024, by Chainalysis. Source: Chainalysis  William Quigley, a cryptocurrency and blockchain investor and co-founder of WAX.io blockchain and stablecoin Tether, states: “Stablecoins will remain one of the fastest-growing areas in digital assets. Backing them with real-world assets, particularly U.S. Treasuries, has already proven successful, and…

---

Filed under: News - @ February 18, 2025 9:27 pm