JP Morgan expects yield-bearing stablecoins to explode.

Stablecoins are approaching the mainstream in a variety of ways. Stablecoin payments are currently behind, but this will improve as more traditional enterprises enter the market. This is not to say that we are not witnessing expansion.
Wall Street is preparing to take control. The reason I say this is because stablecoins are on their way to becoming securities. Remember that Wall Street thrives at piling things on top of one another.

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This is what will happen with stablecoins.

Estimates suggest that yield-bearing stablecoins currently account for 6% of the market. This will explode over the next five years.Yield-bearing stablecoins give interest to people who retain them. This differs from other currency like Tether and USDC. As a result, we'll investigate what's going on. To begin, we're talking about an asset that will be deemed a security. This is why it is part of Wall Street's takeover.

Tether and Circle produce stablecoins backed by US Treasuries. We discussed how US regulation will require asset backing. This is done using yield bearing instruments. T-Bills were chosen by both of these firms. Naturally, this generates a yield for the issuer, i.e. the government.

According to JP Morgan, the stablecoin market is poised to experience significant transformation. We anticipate that this group will account for 50% of all stablecoins. That means a large number of stablecoins will be generated. It will also, in my opinion, affect many of the players. As previously said, once US legislation is clear, we may expect hundreds of corporations to launch stablecoins. The issue is, what will be created? I can imagine a world in which Big Tech takes over. They have the opportunity to provide this as a value add rather than a revenue generator.

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Blackrock charges a management fee ranging from.20% to.50% on its BUIDL fund, depending on which chain the tokens are stored on.The same is not true for token holders, particularly larger corporations. There are businesses (and individuals) who deal with tens of millions of dollars. If we apply.50% to it, we obtain a reasonable amount of money.

A firm like Meta cares more about network effects than feature earnings. Big Tech considers it all part of the package. Wall Street operates under a distinct model. This is where Fintech and conventional finance clash.

The lines are becoming less distinct. It's something we should keep an eye on as we move forward.