Tether co-founder: USD faces growing competition for stablecoin dominance

According to Tether co-founder Reeve Collins, while dollar-denominated stablecoins dominate the stablecoin and real-world asset (RWA) tokenization space, other competitors are emerging.

In an interview in Dubai, Collins said that while dollar-backed stablecoins may currently dominate, other currencies and assets may compete to become the backing for stablecoins. He mentioned: "Stablecoins do help maintain the dominance of the US dollar, especially in the crypto space. The US dollar can be said to be a reserve currency in cryptocurrencies. But now other currencies are beginning to enter the market. More importantly, it's not just currencies, but other types of support."

Collins said that these other assets used to support stablecoins may compete with the US dollar by providing users with higher returns.

Tether Lianchuang said that tokenized assets can support stablecoins

Collins is committed to providing users with stablecoin returns through Pi Protocol. He said that in addition to currencies, money market funds, other commodities and gold can also support stablecoins in the future.

He mentioned: "For example, when you can back a stablecoin with a money market fund that has a higher yield than Treasuries and other on-chain investments, that will generate a lot of income. These will take precedence."

Collins said that these assets will "start to win" because they can bring higher returns to users. In addition, he also said that the tokenization of real-world assets (RWA) may also play a role in the support of stablecoins.

He added that all types of assets can be tokenized and these assets can be used to back stablecoins in the future. "You will have a lot of options, not just the US dollar," he said.

Trump-linked stablecoin lays the foundation for the world

In March, the World Liberty Financial (WLFI) project, which is supported by US President Donald Trump, launched its stablecoin on the BNB chain and Ethereum. However, the project said that these tokens are not yet tradable.

Collins pointed out that the entry of the Trump-backed project into the stablecoin market means that stablecoins are now "fully accepted." He believes that everyone will participate in stablecoins due to this move, including institutions, governments and fintech companies.

“The president of the United States has launched a stablecoin. That’s impressive. It sets the stage for similar moves in other parts of the world,” he said.