Stablecoins, unlike Bitcoin and altcoins, are gaining institutional prominence across the globe. The main reason behind the growing institutional acceptance of stablecoins is that they act as an intermediary between fiat and digital currencies. many see them as the missing link that can synthesize digital and traditional financial sectors. The stablecoin market is worth $137 billion now, A few years ago, it was worth $20 billion. Such significant growth shows the immense promise that these coins have.
The latest financial intuition to publicly laud the benefits of stablecoins in Morgan Stanley. Sheena Shah, a cryptocurrency strategist for Morgan Stanley, predicts that banks would reap heavy benefits from a growing demand for stablecoins. Shah also added that the dominance of Bitcoin in the crypto ecosystem is seeing a slow downfall. It is mainly due to the lower prices of the alternatives and their varied use cases.
Stablecoins offer access to a wider range of yield opportunities. Many investors are opting for stablecoins for this reason. It facilitates wealth creation with relatively less volatility. As stablecoins are becoming more popular, the government is also looking at its loopholes and scope for regulation.
With diverse developments going on in different areas of the crypto ecosystem, stablecoins emerge as a long-run player. Institutional banks have a great opportunity here to capitalize on the sector and earn heavy revenues from it. Banks can actively participate in the process, and earn significant amounts of money from it.