Binance Research, the research, and analysis arm of the world’s largest crypto exchange Binance conducted comprehensive research on stablecoins. The report released sheds light on the development of traditional assets or fiat-backed digital tokens. It also evaluates the stablecoin initiatives by Facebook and Samsung.
How are fiat-backed stablecoins adapting their strategies to remain competitive?https://t.co/hJtvJoYrtG
— Binance (@binance) May 20, 2019
Binance Research is a crypto research and analysis firm, which provides insights into cryptocurrencies backed by substantial data. It aims to create transparency in the crypto space and facilitate high-quality data for a better market analysis for investors.
Stablecoins are an attempt by crypto companies to offer the benefits of both worlds to holders. These coins are usually backed either by a fiat currency like the US Dollar or Pound Sterling or by any traditional assets like government bonds, commodities, etc. Stablecoins usually are targeted towards traditional mind-set users who want to explore the crypto realm without taking any serious risks.
Off late, the popularity of stablecoins is on the rise with giant business corporations choosing them as their native tokens. JPMorgan, for instance, launched its stablecoin JPM Coin to facilitate cross-border transactions. Similarly, Facebook is also ready to launch its native stablecoin for payments. The report stated,
“Stablecoin initiatives from various non-financial companies, i.e., Facebook and Samsung, may further the growth of the digital asset industry by introducing cryptocurrencies and blockchain technology to their large existing user bases.”
Samsung is among the biggest smartphone manufacturers in the world, with a presence in almost every country on the planet. On the other hand, social media giant Facebook has a user base of over 2.3 billion. These humongous numbers are enough to understand the potential of their foray into crypto and blockchain space. The report also claims that companies like Facebook and Samsung are less prone to risks than traditional financial institutions. It added that these companies move at a faster pace, and that coupled with their large capital and human resources, could be just what the market needs to explode.
The Binance Research report also discusses the recent developments in the stablecoin segment. It stated that the first four months of 2019 have been positive for stablecoins. The report also puts forth the possible effects of the expansion of tokens backed by fiat currencies other than the US Dollar.