Regulators and Crypto: a Rocky Road Ahead For Stablecoins? | Elliptic

Crypto is designed to break down barriers, allowing the best money to rise to the top. We see this behavior in stablecoins, where >99% of stablecoins are US dollars. There isn’t a whole lot of organic demand for fiat currency #109. Many people are artificially restricted from holding dollars offchain, which is a major reason for the success ... See more

The total market cap of all stablecoins is close to $200B. This represents around 10% of the entire crypto industry. They have quickly become a critically important piece of most DeFi products. There are several ways to create a dollar-pegged token, and each strategy comes with some tradeoffs.

As crypto becomes mainstream, regulation is coming. A united industry that has thought deeply about coordination and scaling issues, and has developed sophisticated institutions that can engage with existing structures will be invaluable. Institutions could support growth, innovation and help to bring crypto mainstream in a way that retains the ben... See more

Fiat-collateralized stable tokens are relatively easy to set up, but they have a centralization problem. This is also why some refer to them as “centralized” stable tokens. An institution – usually operated by a private company – needs to manage the physical assets that act as collateral of the stable token, usually in a bank account or secure vaul

... See more