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NEW YORK – Arthur Hayes, co-founder and former CEO of BitMEX, recently shared observations that major US banks like JPMorgan (NYSE:) may be poised to make a significant impact on the stablecoin market. He pointed out that these institutions could potentially adopt business models similar to that of by issuing fiat-backed digital currencies.
Big banks’ potential move to enter the stablecoin space is to leverage the trust and reputation they have gained to offer fiat-backed currencies, like Tether. Mr. Hayes pointed out that this could allow these banks to exploit new sources of income, in particular thanks to the interest margins generated by Treasury bills, like the financial model of Tether.
Despite Tether’s strong market position, characterized by substantial market capitalization and reserves, Hayes highlighted the possibility that the entry of traditional financial institutions could pose a threat to existing stablecoin operators. This speculation comes at a time when the intersection between traditional finance and the thriving digital currency sector is becoming increasingly important.
Mr. Hayes did not specify a timetable or confirm that the banks intended to pursue this strategy. However, his comments sparked discussions about the future dynamics of the stablecoin market and the role that established financial entities could play in its evolution.
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