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Stablecoins as a trend in the development of cryptocurrency

11/02/2018
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In the report of Morgan Stanley analysts for the first time, a significant part of the attention was paid to the stablebcoins. This new trend in the development of blockchain technologies has already gained wide popularity among investors. According to the text “Bitcoin Decrypted”, it is precisely these coins that can account for a significant part of the financial flows.

What is Stablecoin

More than 60% of transactions in traditional cryptocurrencies account for operations in conjunction with fiat money - the dollar, pound, yen, euro and others. To secure such transactions, there is a need for coins at a fixed rate. The exchanges that work only with cryptocurrencies began to actively use them in trading operations. Now there are a number of assets that are tied to fiat money. Their release involved:

  • London Block Exchange;
  • Bit Trade;
  • GMO Internet;
  • Tether.

These companies have already achieved recognition in the professional community, but their reputation is confirmed by real assets. This is best shown by the example of the most popular representative of this business, Tether

Stablecoin Tether

The eighth place in terms of capitalization among cryptocurrencies is occupied by the Tether coin, which is produced by the company of the same name. The asset is pegged to the US dollar and is secured by reserves totalling $ 1,831,322,828. Confirmation of this has been provided by the US Treasury.

The business partner of the company is Deltec Bank & Trust Limited, which provides for conducting transactions outside the blockchain. That is, it is already possible to talk about the enormous interest of investors in the business that goes in the legal field. It is clear that not all of the produced Stablecoins will be able to achieve recognition. According to experts, the market requires stability, high liquidity and low transaction fees. Those organizations that can provide these conditions will remain among the leaders.

It is noteworthy that stablecoins have become interesting not only to entrepreneurs. Switzerland and Sweden announced the imminent release of blockchain coins linked to national currencies.

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