Cryptocurrency was designed in such a way that it helped to modify the way we do financial transactions through banks or any other financial organization, such as Paypal, Western Union, etc. Blockchain-based digital money helps to evolve a new financial ecosystem in which there is no central governing authority. You might have heard about the popular crypto coins like Bitcoin, Litecoin, and Ether, but are you aware of stablecoin? Would you like to know why stable coin development services are working day and night to facilitate businesses in managing their finances in a better way, without worrying about price volatility?
Let’s get introduced to stablecoins. They are also known as altcoins, or an alternative to Bitcoin, which helps the investors to provide a unique experience of spending a cryptocurrency for shopping or making financial deals much like a fiat currency. It’s because stablecoins are backed by a fiat currency like USD or real-world assets like gold. It protects investors and traders from volatility in the market. Furthermore, the unbanked community can also use the facilities like sending and receiving money through the blockchain in a secure and trustless manner. Stablecoins are undisputedly reliable assets and non-speculative too, and that’s the reason why businesses like to find a seasoned stablecoin development company that can help in creating a new stablecoin that can fulfill the business needs much more appropriately.
Role of Stablecoins In The Crypto Ecosystem
Stablecoins are playing a significant role in the crypto ecosystem in the current pretext, and crypto users consider them to be a safer means of trading. The rising number of DeFi applications has changed the ways stablecoins are being used. The market capitalization of stablecoins reached $170 billion in 2022. It shows how immensely they are playing their role in liquidity processing. No wonder, the rising popularity of these unique crypto assets is directly proportional to the growing demand for stable coin development services.
Tether, the most popular stablecoin, has a current market cap of $70.20 billion and is being majorly used for crypto-asset trading and providing liquidity. Here, it is necessary to be reminded that in May 2022, stablecoins were behind 45% of the liquidity of DEXs (Decentralized Exchanges), and approximately 50% of this amount was constituted by collateralized stablecoins, such as Tether.
Apart from liquidity provisioning, stablecoins are used to make payments, just like fiat currency. However, there are some legal aspects that need to be sorted out before ensuring the participation of stablecoins in the real economy. Many countries have still not granted cryptocurrency legal status. However, there are still numerous benefits of staying in touch with a stablecoin development company for the creation of new crypto assets.
Let’s understand the advantages of stablecoins:
- Used as savings: As the value of stablecoins is not likely to fluctuate over time, they can be saved just like standard fiat currency, or as a means of financial savings. The holder of these digital coins can use them anytime when required.
- Used as payment mode: Some big brands such as Walmart have launched their own stablecoins with the help of stable coin development services and are allowing their customers to make payments in crypto. It provided dual benefits to the businesses as they can charge 2-3% transaction fees from their customers, in addition to the price of products or services they are offering.
- Trading: Stablecoins can be traded through crypto exchanges with complete ease.
- Cross-Border Transactions: Blockchain has solved the problems of handling overseas workers and global clients by simplifying the ways digital money is paid and received. There is no third-party service provider that facilitates transaction processing, which helps save money and time.
- Payroll: Some organizations have experimented with their payroll system by paying salaries to their workers in the form of stablecoins. However, there are still many question marks on paying the workers in stablecoins that can be resolved with time.
- Lending/Borrowing: Anyone can borrow or lend digital money through reliable platforms in a trustless manner.
- Empowering dApps: Decentralized applications often accept native tokens of the blockchain on which they are built. However, the problem of price fluctuation is the biggest headache for dApp users. Therefore, using stablecoins for sending or receiving funds can help deal with the biggest risk factor and provide more power to dApps.
Conclusion
There are countless benefits of launching a stablecoin. They ensure faster speed of transactions, stability of price, lower fees of transactions, ease of cross-border payments, and transparency of ledger records. Stablecoins are programmable, and you can seek the help of some experienced stable coin development services for the creation of a new coin with extraordinary features.
Antier is one such stablecoin development company that can help meet your unique requirements with great perfection. Connect with industry experts today!
