💸⏱️ STABLECOINS TO THE RESCUE! Seen as ideal for real-time collateral management in TradFi.
The #Stablecoins and cryptocurrencies are gaining ground in traditional finance (TradFi) by speeding up payments and increasing efficiency 🚀. A pilot from DTCC Digital Assets suggests that stablecoins are the "perfect" instrument for real-time collateral management ⏱️, modernizing and simplifying this critical process.
Joseph Spiro from DTCC Digital Assets highlighted that crypto assets are ideal for collateral management in derivatives, repos, and more, eliminating complicated manual processes ⚙️. This is because the current management requires manual processes due to the strict requirements for releasing the collateral locked in pre-established intervals 🔒.
This advancement occurs while U.S. lawmakers work on clear regulatory frameworks for stablecoins 🇺🇸. Recently, crypto leaders supported the GENIUS Act, which seeks to establish collateralization guidelines and AML compliance, although it initially struggled to gain Democratic support 🤔.
Kyle Hauptman from the National Credit Union Administration added that stablecoins could expedite traditional fiat-backed loans 🤝, making repayment more transparent and efficient thanks to their programmability. Currently, the settlement of loans is a cumbersome process at the end of the month 🗓️.
Another legislation, the STABLE Act, was passed by a committee in the House, awaiting debate and a vote in the full chamber 🏛️.
Do you think stablecoins will revolutionize collateral management in TradFi? 🤔 What regulatory challenges must be overcome for their mass adoption?
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