-
Tokenized
treasuries
won’t
fully
replace
stablecoins,
JPMorgan
said. -
Stablecoins
have
a
regulatory
advantage
because
they
are
not
classified
as
securities,
the
report
noted. -
Liquidity
in
stablecoins
is
also
much
higher
than
tokenized
treasuries,
the
bank
said.
-
01:22
Uptober
Forming
Amid
Rising
Stablecoin
Liquidity
and
Bitcoin
Transactions -
02:14
Open
Interest
in
XRP
Jumps
to
Over
$1B;
Bitcoin
Mining
Profitability
Fell
Again
in
September:
JPMorgan -
02:16
SEC’s
Case
Against
Kraken
Going
to
Trial;
PayPal’s
PYUSD
Tops
$1B
Market
Cap -
01:10
Bitcoin
Price
May
Slide
Lower
on
$1B
Withdrawal
of
USDT:
IntoTheBlock
Stablecoins
are
unlikely
to
be
fully
replaced
by
tokenized
treasuries,
JPMorgan
(JPM)
said
in
a
research
report
Thursday.
It
is
“conceivable”
that
over
time,
tokenized
treasuries
could
replace
most
of
the
cash
sitting
unused
within
stablecoins,
the
report
said.
Still,
the
bank
said
a
full
replacement
of
stablecoins
seems
unlikely.
This
is
because
tokenized
treasuries
are
at
a
regulatory
disadvantage
due
to
their
classification
as
securities.
This
means
they
are
subject
to
more
restrictions
than
stablecoins,
limiting
their
use
as
collateral
in
the
wider
crypto
ecosystem
The
report
also
said
the
amount
of
“idle
cash”
within
stablecoins
is
hard
to
calculate,
but
it
is
unlikely
to
“represent
the
majority
of
the
stablecoin
universe.”
For
this
reason,
tokenized
treasuries,
such
as
Blackrock’s
BUIDL,
will
likely
only
replace
a
small
part
of
the
stablecoin
market,
JPMorgan
noted.
A
stablecoin
is
a
type
of
crypto
designed
to
hold
a
steady
value
and
is
usually
pegged
to
the
U.S.
dollar,
though
other
currencies
and
commodities
such
as
gold
are
also
used.
The
bank
noted
that
stablecoins
currently
have
a
large
advantage
over
tokenized
treasuries
when
it
comes
to
liquidity.
With
a
total
market
of
almost
$180
billion
across
many
blockchains
and
centralized
exchanges
(CEX),
stablecoins
offer
low
transaction
fees
even
on
larger
trades.