Tether co-founder Reeve Collins stated that while dollar-backed stablecoins still dominate the market, new assets are entering the scene. Speaking in an interview with Cointelegraph at a conference in Dubai, Collins emphasized that the dollar has become a sort of reserve currency within the crypto industry. However, new forms of collateral are emerging that could shift the balance of power.
Dollar Maintains Leadership but Competitors Are Emerging
According to Collins, the future of stablecoins will not rely solely on currencies. He pointed out that alternatives such as money market funds, commodities, and gold could serve as collateral. These assets may offer higher yields compared to traditional government bonds, making them more attractive to users.
Collins noted that financial instruments already generating returns on the blockchain could take leading positions among stablecoin collateral options.
He also stressed that tokenization of real-world assets will play an important role in stablecoin collateral structures. Since any type of asset can be tokenized, users will have a broad selection of collateral options beyond the dollar.
New Projects Entering the Market
In March, the World Liberty Financial (WLFI) project, supported by Donald Trump, launched the USD1 stablecoin on BNB Chain and Ethereum networks. However, the asset is not yet available for trading.
Collins commented on the launch, stating that the involvement of the U.S. president in backing a stablecoin marks full governmental acceptance of such assets. In his view, this step will accelerate the entry of both private companies and government bodies into the market.
According to Santiment, the supply level of Gemini Dollar (GUSD) on exchanges sharply increased from less than 48% to over 62%. The primary factor was the transfer by a major holder who moved 10% of the total GUSD supply from a cold wallet to the Gemini exchange. Historically, such large movements of stablecoins are seen as preparations for planned purchases of Bitcoin, Ethereum, or XRP.
New Stablecoin Legislation
In the coming months, the U.S. may pass the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), which has already been approved by the Senate Banking Committee. The bill aims to establish a federal legal framework for issuing stablecoins used in trading, capital storage, and cross-border transactions.
According to estimates by Standard Chartered, passing the bill could boost the total stablecoin issuance almost tenfold — from $230 billion to $2 trillion by the end of 2028. President Donald Trump is expected to sign it after congressional approval. However, experts note that the new regulatory regime could either legitimize the stablecoin market or further entrench the dollar’s dominance in the crypto industry.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.