{"id":844371,"date":"2025-04-29T09:11:47","date_gmt":"2025-04-29T14:11:47","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/29\/us-dollar-to-face-growing-competition-for-stablecoin-dominance-tether-co-founder\/"},"modified":"2025-04-29T09:11:47","modified_gmt":"2025-04-29T14:11:47","slug":"us-dollar-to-face-growing-competition-for-stablecoin-dominance-tether-co-founder","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/29\/us-dollar-to-face-growing-competition-for-stablecoin-dominance-tether-co-founder\/","title":{"rendered":"US dollar to face growing competition for stablecoin dominance: Tether co-founder"},"content":{"rendered":"
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While United States dollar-denominated stablecoins dominate the stablecoin and real-world asset (RWA) tokenization game, other competitors are coming into play, according to Tether co-founder Reeve Collins.\u00a0<\/p>\n

Speaking to Cointelegraph in Dubai, Collins said that while dollar-backed stablecoins may be dominant, other currencies and assets may compete to back stablecoins.<\/p>\n

\u201cThe stablecoin definitely helps preserve the dollar dominance, especially in the crypto space,\u201d Collins said. \u201cThe dollar is kind of the reserve currency of crypto. But now there are other currencies coming into play. But more importantly, it\u2019s not currencies. It\u2019s other types of backing,\u201d he added.<\/p>\n

Collins said that other assets used to back stablecoins may compete with US dollars by bringing a higher yield to users.\u00a0<\/p>\n

Interview with Tether co-founder Reeve Collins in Dubai, UAE. Source: Cointelegraph<\/em>\u00a0<\/em><\/figcaption><\/figure>\n

Tether co-founder says tokenized assets can back stablecoins<\/h2>\n

Collins, who works bringing stablecoin yield for users through Pi Protocol, told Cointelegraph that apart from currencies, money-market funds, other commodities and gold could back stablecoins in the future.\u00a0<\/p>\n

\u201cWhen you can back it with money market funds, for instance, that generate a higher yield than T-bills and other things like that that are coming onchain, where there\u2019s a lot of yield that will be generated. Those will take precedence,\u201d Collins said.\u00a0<\/p>\n

Collins said these will \u201cstart winning\u201d because they bring higher user returns. Furthermore, the executive also said RWA tokenization could play a role in stablecoin backing.\u00a0<\/p>\n

The executive told Cointelegraph that since all types of assets can be tokenized, these can be used to back stablecoins in the future. \u201cYou\u2019re going to have a lot of choices other than just dollars,\u201d he added.\u00a0<\/p>\n

Related: <\/strong><\/em>Tether boosts Juventus stake to 10% in latest strategic buy<\/strong><\/em><\/a><\/p>\n

Trump-linked stablecoin lays foundation for the rest of the world<\/h2>\n

In March, the World Liberty Financial (WLFI) project, backed by US President Donald Trump, launched its stablecoin<\/a> on BNB Chain and Ethereum. However, the project said that the tokens were not tradable yet.\u00a0<\/p>\n

According to Collins, the stablecoin entry of a Trump-backed project means that stablecoins are now \u201cfully accepted.\u201d The executive believes everyone will get involved in stablecoins because of the move. This includes institutions, governments and financial technology companies.\u00a0<\/p>\n

\u201cThe President of the United States launched a stablecoin. It\u2019s impressive. It lays the foundation for the rest of the world to do it as well,\u201d he said.\u00a0<\/p>\n