US dollar to face growing competition for stablecoin dominance: Tether co-founder
USD-denominated stablecoins currently dominate the market, but other currencies and assets may emerge as competitors, according to Tether co-founder Reeve Collins. He noted that while the dollar maintains its status as the reserve currency in crypto, alternatives could provide higher yields for users. Potential backing for stablecoins includes money-market funds, commodities, and gold, which may offer better returns than traditional options like T-bills. Collins emphasized that tokenization of various assets could diversify the backing of stablecoins beyond just the dollar. Additionally, the launch of a Trump-backed stablecoin project indicates broader acceptance of stablecoins, potentially encouraging participation from institutions and governments worldwide.
