Fabian Dori: A Wave of Payment Stablecoins Is About to Sweep the World
The GENIUS Act has drawn a line between interest-bearing stablecoins and stablecoins used for payments. This move brings U.S. legislation closer to the EU's MiCA crypto regulation, creating a shared international foundation for crypto asset oversight, according to Fabian Dori.
“Stablecoin issuers and developers will aim to build original applications that not only meet current customer needs but also generate demand for entirely new services, including payments,” said Sygnum’s Chief Investment Officer.
Payment systems like Mastercard (NYSE:MA) and PayPal (NASDAQ:PYPL) have already laid the groundwork for the legal use of stablecoins, and major corporations — including Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) — are exploring the use of stable crypto coins for payroll and cross-border settlements, Dori noted.
In his view, investors seeking yield should consider tokenized money market funds. These funds offer daily liquidity and currently provide 4–5% returns through products backed by U.S. Treasury debt instruments.
Given restrictions on issuing interest-bearing stablecoins, token issuers are expected to focus on features such as real-time settlement and low transaction fees, the Sygnum executive suggested.
Last year, the digital bank Sygnum received a license from Liechtenstein’s Financial Market Authority (FMA) to provide brokerage, custody, and B2B services, as well as digital asset-related solutions. In 2023, Sygnum also launched a branch in Abu Dhabi to serve high-net-worth clients working with cryptocurrencies.
See also: "US Senators Express Concern Over Crypto-Backed Mortgage Lending Expansion"
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