HTX Ventures Report Highlights Stablecoins as Emerging Worldwide Dollar Facilities
HTX Ventures, the investment arm of crypto exchange HTX, has released a new report taking a look at how stablecoins are progressively forming a parallel U.S. dollar-based financial infrastructure – one that might significantly reshape the international payments landscape.
The report, titled ‘The On-Chain Extension of the Dollar,’ argues that stablecoins are no longer simply crypto utilities but are quickly becoming key instruments in a decentralized monetary system that complements traditional banking rails.
The report highlights persistent flaws in traditional cross-border payment systems, such as high fees, delayed settlement times, and challenging regulatory frameworks. In contrast, stablecoins like USDT and USDC offer real-time settlement, global accessibility through digital wallets, and smooth integration with multi-chain ecosystems, giving them a competitive edge in areas like remittances, digital trade, and online commerce.
Building on this, the report points to increasing adoption in regions like Latin America, where USDT is being used as a hedge against local currency depreciation. In parts of Asia and Africa, stablecoins are providing practical financial solutions in economies affected by inflation, capital controls, or underdeveloped banking infrastructure.
Stablecoins are bridging access to the U.S. dollar for over 1.3 billion unbanked individuals worldwide, acting as both legal tender and a store of value. The report also highlights the evolution of stablecoins into ‘on-chain shadow banks,’ transforming fiat into short-term U.S. Treasuries while issuing dollar-pegged tokens.
HTX Ventures suggests that stablecoins, alongside Real-World Assets (RWA), could play a crucial role in connecting traditional and decentralized finance. This synergy is expected to revolutionize DeFi by introducing real-world collateral, reducing risk, and expanding its practical applications.
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