It was stated by Tether co-founder Reeve Collins to that Trump’s involvement in stablecoins opens the door for the global adoption of the asset class.
While United States dollar-denominated stablecoins dominate the stablecoin and real-world asset (RWA) tokenization space, Tether co-founder Reeve Collins notes that other competitors are emerging.
In Dubai, Collins stated in an interview that while USD-backed stablecoins currently dominate, competition from other currencies and assets to back stablecoins may arise.
Collins stated that these other assets, used to back stablecoins, may compete with US dollars by offering users a higher yield.
Someone told Collins, who works on bringing stablecoin yield to users through Pi Protocol, that currencies, money-market funds, other commodities, and gold could back stablecoins in the future.
Tether Co-Founder Suggests Tokenized Assets Could Support Stablecoins
Collins stated that when money market funds, for example, back stablecoins and generate higher yields than T-bills and other on-chain assets, they will produce significant yield and take precedence.
Collins said that these assets will “start winning” because they offer higher returns to users. The executive also mentioned that RWA tokenization could help back stablecoins.
Someone told the executive that tokenizing all types of assets could allow them to back stablecoins in the future. He added, “A lot of choices other than just dollars will be available.”
In March, the World Liberty Financial (WLFI) project, backed by US President Donald Trump, launched its stablecoin on BNB Chain and Ethereum. However, the project stated that the tokens are not yet tradable.
Trump-Backed Stablecoin Sets the Stage for Global Adoption
Collins stated that a Trump-backed project entering the stablecoin market signifies that stablecoins have now become “fully accepted.” The executive believes this move will lead to adoption by everyone, including institutions, governments, and financial technology companies.
He stated that the President of the United States launched a stablecoin, which he considers impressive. This move lays the foundation for the rest of the world to follow suit.
