Stablecoins: why all the fuss around the “killer app” of tokenisation?

Written by Breige Tinnelly, Archax

It is by now well recognised that the true benefits, and indeed scaled adoption, of blockchain and DLT in financial markets can only be achieved if the entire lifecycle of issuance, settlement trade and ongoing life management are digitally native on-chain, including a digitally native payment leg. Stablecoins are unfolding as one of the most relevant cash-leg options for settlement across financial markets, providing a much-needed bridge between TradFi and DeFi. As the largest successful use case for tokenisation today, stablecoins are moving into mainstream commerce and financial transactions as major players weigh in, including PayPal, Stripe, Visa, SocGen BBVA, Circle and HashNote. Furthermore, many jurisdictions are moving to provide regulatory clarity for stablecoins and a significant pro-crypto policy shift in the US will propel significant growth. In the near term, this will fuel demand for liquid yield bearing tokenised assets, including money market funds (MMFs) and other di…