According to Eric Chen, CEO of Injective Labs, stablecoins are expanding beyond crypto trading and will soon impact the broader financial system.
What Happened: In an interview with Benzinga, Chen said stablecoins will transform the industry by addressing inefficiencies in mainstream finance and increasing transaction speed and accessibility across global markets. He emphasized that this was planned.
He believes that stablecoins will soon become the basis for key financial processes, especially in areas such as cross-border payments and capital formation.
“We’re talking about reducing all kinds of international wires and money transfers to a matter of minutes, seconds,” Chen told Benzinga.
According to Chen, while the initial focus of stablecoins was on trading and speculation, the real power of stablecoins lies in their ability to fill gaps in existing financial systems, compared to traditional systems like SWIFT. It is said to offer faster and safer transactions.
He also said that by eliminating the intermediaries and lengthy processes associated with traditional finance, stablecoins can reduce costs, especially for markets and regions that have historically been underserved by financial services. He pointed out that it has the potential to significantly reduce costs and improve accessibility.
Chen sees stablecoins playing an important role in expanding access to financial markets beyond payments. “The activity and market size of the financial industry will increase by an order of magnitude,” Chen predicted.
Also read: Bitcoin supporters hit back at European Central Bank, claiming criticism was motivated by ‘vested interests’
Why it matters: Chen’s vision for the role of stablecoins in modern finance aligns with recent developments from leading fintech companies like Stripe.
Earlier this week, Stripe confirmed it had acquired stablecoin platform Bridge in a deal reportedly worth $1.1 billion.
Stripe CEO Patrick Collison praised stablecoins, saying, “Stablecoins are room temperature superconductors for financial services.”
Mr. Chen described a future in which stablecoins make it easier for individuals outside the United States to access global financial products such as stocks, bonds, and other investment products.
Currently, these processes are slow, costly, and inaccessible to many, but Chen believes blockchain solutions can democratize access on a global scale.
The CEO’s forward-looking vision is already becoming a reality, as fintech giants like PayPal enter the stablecoin market, bringing decentralized finance (DeFi) and traditional finance closer together.
Chen believes that these developments will lead to more and more collaboration between fintech platforms and stablecoin providers, eliminating bottlenecks and improving liquidity across the financial ecosystem.
These trends will be a major topic of discussion at Benzinga’s Future of Digital Assets event on November 19th, where industry leaders will discuss how stablecoins and blockchain technology will impact not only financial markets but also the world. We will discuss how we are transforming the economic landscape of the world.
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