Cypher
(BTC) Bitcoin News TodayDeFiEthereum (ETH)NewsNFTStablecoinTether (USDT)Web3

Pantera Optimistic Stablecoins will Succeed Where Ethereum and Bitcoin Failed

A Pantera executive says that the stablecoin space will change as providers must provide money market yields to remain competitive.An executive at Pantera Capital claimed that despite being ‘wildly fruitful,’ Bitcoin (BTC) and Ethereum (ETH) is yet to achieve the original expectations most had for crypto.

Pantera Believes Stablecoin Will Rival Bitcoin and Ethereum

In a Tuesday letter, Jeff Lewis, Pantera’s product manager, said that stablecoins are poised to. Fifteen years following the BTC whitepaper, Bitcoin’s lack of adjustability and speed impacts its case for being an excellent substitute for money.

 ETH is ‘currently the programmable decentralized system that BTC on its own could not be.’ This has opened an opportunity for nonfungible tokens (NFTs), Web3 apps, and decentralized finance (DeFi) supported by ETH. Lewis also said that, unfortunately, ETH is nearly as unstable as BTC, which makes it unfit as a stable currency.

On the other hand, stablecoins will promote peer-to-peer value transfers and aid people in safeguarding against unstable currencies. The Pantera executive also said they will evade trusting service providers.

Cypher

By comparing PayPal, a payment behemoth, to a stablecoin, Lewis notes that it permits users to inexpensively move digital ledger entries worth a single dollar to peers and dealers globally.

📰 Also read:  Ethereum Layer-2 Blast Defies Odds to Realize $560M Million in Value Locked

Pantera Anticipates Stablecoins to Grow Exponentially

In August, the firm introduced PYUSD, its Stablecoin. USDC and tether (USDT), the most prominent stablecoins, are not naturally interest-bearing. However, Lewis argues that a precise, trustless, yield-producing ‘PayPal 2.0’ could be imminent.

The vision seems theoretical since PayPal has yet to reveal any plans. A PayPal representative failed to comment on the issue. In the letter, Lewis revealed that Stablecoin is on its way because once regulations become vivid, market conditions will compel providers to provide money market yields to remain competitive.

The stablecoin market is already experiencing a coin surge with yields linked to fundamental money-market investments and tokenization. In 2021, Franklin Templeton, a fund group comprising assets worth nearly $1.5T, introduced a money market fund that records transactions using a public blockchain.

BENJI token represents one share of the funds and permits it to act similarly to a stablecoin with yield.JPMorgan has developed blockchain-founded ups, while Citi Token Services by Citi seeks to enhance access to tokenized deposits.

Additionally, customers can access payments across borders as well as automated trade finance solutions 24/7. Earlier this year, Ondo Finance introduced bond and tokenized United States Treasury offerings, while in August, Adapter launched a tokenized fund on Archblock, a decentralized marketplace.

Benefits of Tokenization of Assets

In a Monday report, David Duong, Coinbase’s institutional research head, and David Han, an analyst, wrote that currently, stablecoins are ‘one of the most vivid potential templates for tokenization.’

📰 Also read:  BlackRock Registers iShares Ethereum Trust in Delaware

They added that as part of the subsequent market cycle, stablecoin liquidity might be one of the most vivid ways tokenization links up with the broader crypto economy.’ 

Lewis noted that compared to banks, PayPal’s platform seems more attractive owing to its speed and simplicity. He also questioned what would happen if PayPal 2.0 was visibly safe and possessed a market yield.

People will get the initial actual mass adoption of a token, and the next great growth wave in the whole crypto ecosystem will be unleashed later. This will enable clients to focus on the services’ and products’ values rather than the tokens provided by the projects.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  Nvidia's Stock Price Approaches Record High: Here's Why

Cypher

Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content