A leading crypto investor and analyst pointed out how Wall Street firms like BlackRock were increasingly promoting US stablecoins and could accelerate their adoption in the future.
Crypto firm Circle, which manages the stablecoin USD Coin (USDC), recently enabled the transfer of a fund’s shares to the stablecoin. BlackRock, the asset management firm running the tokenized fund, is likely supporting the move. Moreover, a smart contract functionality will enable the transfer from the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The move has led to analysts claiming how BlackRock could promote US stablecoins.
Legislators have held contrasting views on central bank digital currencies (CBDCs) in the US. On the other hand, private firms have largely supported the stablecoin market. Meanwhile, BUIDL, which runs on the Ethereum blockchain, could be a significant promoter of the stablecoin market.
The discussion among crypto experts and analysts also increased recently. It happened after Ryan Sean Adams, a crypto investor, posted a long note. He claimed the stablecoin market had the firm support from banks and asset management firms like BlackRock.
He said, “The banks will backdoor themselves into stablecoins – by acquiring/partnering/controlling crypto native companies – and they’ll lobby for stablecoin legislation and make it happen along the way.”
Another interesting comment he made involved CBDCs. He said the US lacked the political will to explore and create a CBDC. Since the move by BlackRock would also lead to wider adoption and use cases of Ethereum, it was beneficial, he said. Eventually, crypto would win, he noted.
A stablecoin law is in the works in the US, but authorities haven’t released further updates. At the same time, the BlackRock spot Bitcoin ETF has become very successful.
Check out Millionero’s blog and read the latest news updates and articles on the crypto space! Head to Millionero exchange for a seamless crypto trading experience!