USDC’s Depeg Laid Bare the Risks Traditional Finance Poses to Stablecoins

There may be additionally rising curiosity in exploring different options to handle the shortcomings of stablecoins. One potential different is tokenized financial institution deposits, which permit customers to carry digital tokens that signify possession of underlying financial institution deposits. Tokenized financial institution deposits can be topic to the regulatory requirements of banking, offering larger confidence within the underlying property’ security, though credit score dangers related to conventional banking would, in fact, stay.