Cryptocurrencies: Revolution in Markets via Tokenization and Stablecoins

A new wave of interest is sweeping through the digital currency space, driven by legislative clarity in the US regarding stablecoins and the increasing use of asset "tokenization". According to The Economist, this development creates expectations for changes in the financial system.

The recent passage of the GENIUS Act by Donald Trump on July 18 provides a regulatory framework for stablecoins, digital tokens backed by conventional assets. Major financial institutions are rushing to participate, while "tokenization" is gaining ground, with stocks and mutual funds being traded on blockchains.

Vlad Tenev, CEO of Robinhood, believes that the new technology could form the basis for a new financial system, while Christine Lagarde, President of the European Central Bank, expresses concerns about the "privatization of money" through stablecoins.

The value of stablecoins stands at $263 billion, up 60% compared to last year, while Standard Chartered predicts that the market will reach $2 trillion in three years. JPMorgan Chase has announced its own digital product, the JPMorgan Deposit Token.

Stablecoins facilitate cheap and fast transactions, while the GENIUS Act stipulates that they must be fully backed by safe, liquid assets. Major retailers are considering issuing their own digital currencies.

Tokenized assets are digital representations of existing assets. The US Securities and Exchange Commission has pointed out that the rules for securities apply regardless of the form the assets take.