Going to See More Stablecoins in Alts: Krupetsky
Summary
Ava Labs' Morgan Krupetsky highlights the potential of tokenization and stablecoins to tackle challenges in the private credit market during her discussion on Bloomberg Crypto. This insight comes amid a notable decline in money managers' stocks.
Key Insights
What are stablecoins and why are they relevant to alternative investments?
Stablecoins are tokenized cash or programmable digital dollars designed to maintain a stable value, often pegged to fiat currencies like the US dollar, with nearly $260bn in market cap as proven real-world assets (RWAs). Morgan Krupetsky highlights their potential in alternative investments like private credit, where they enable efficient liquidity provisioning, programmatic payments, and credit facilities amid institutional adoption.[1][3]
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What is the GENIUS Act and how does it impact stablecoin adoption?
The GENIUS Act is recent US legislation that dramatically lowers capital reserve requirements for broker-dealers holding qualifying stablecoins, treating them nearly as cash equivalents and making their operationalization at scale economically feasible. This opens use cases like stablecoin subscriptions, redemptions, and interest disbursements, particularly for institutional and corporate applications in private credit markets.[1][3]
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