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 the stablecoin and real-world asset (RWA) tokenization space is dominated by United States dollar-denominated stablecoins, it is noted by Tether co-founder Reeve Collins that other competitors are emerging.
In Dubai, it was stated by Collins in an interview with that while USD-backed stablecoins currently dominate, competition from other currencies and assets to back stablecoins may arise.
It was stated by Collins that these other assets, used to back stablecoins, may compete with US dollars by offering a higher yield to users.
It was told to Collins, who works on bringing stablecoin yield to users through Pi Protocol, that in the future, stablecoins could be backed by currencies, money-market funds, other commodities, and gold.
It was stated by Collins that when money market funds, for example, can be used to back stablecoins and generate a higher yield than T-bills and other on-chain assets, a significant amount of yield will be produced, and such assets will take precedence.
It was said by Collins that these assets will “start winning” due to their ability to offer higher returns to users. Additionally, it was mentioned by the executive that RWA tokenization could play a role in backing stablecoins.
It was told to the executive that, since all types of assets can be tokenized, they could be used to back stablecoins in the future. “A lot of choices other than just dollars will be available,” it was added by him.
In March, the stablecoin of the World Liberty Financial (WLFI) project, backed by US President Donald Trump, was launched on BNB Chain and Ethereum. However, it was stated by the project that the tokens were not yet tradable.
It was stated by Collins that the entry of a Trump-backed project into the stablecoin market signifies that stablecoins are now “fully accepted.” The executive believes that stablecoins will be adopted by everyone due to this move, including institutions, governments, and financial technology companies.
It was stated by him that a stablecoin was launched by the President of the United States, which is considered impressive. The foundation for the rest of the world to follow suit has been laid by this move.
