Arthur Hayes predicts: Banks entering the stablecoin sector may quickly dominate
ChainCatcher news, according to Cryptoslate, Arthur Hayes predicted during an interview with Unchained journalist Laura Shin that once banks recognize the profit potential in the stablecoin space, they will quickly dominate using existing infrastructure and customer trust.
Hayes pointed out that although Tether has successfully positioned itself as the leading fiat-collateralized stablecoin, its underlying business model is one that traditional banks could easily adopt and may excel at. "The reason centralized stablecoins like Tether can thrive is that the traditional banking system has left a gap." Hayes believes, "Stablecoin issuers have no viable business because they use bank custodial funds, which allows them to trade debt instruments."
Hayes stated that once banks receive the green light to participate in the digital asset space, they will have the necessary integrated financial networks and regulatory compliance frameworks to make a significant impact.