Quant Analyst Says Legacy Financial Institutions Are Eyeing One Ethereum-Dominated Sector Heres Why

The traditional financial sector will step into decentralized finance (DeFi) in the coming months, predicts Ki Young Ju, CEO of on-chain insight platform CryptoQuant.

Yeonju To tell His 304,800 Twitter followers show that stablecoins are leading the way in terms of institutional adoption.

As evidence, he cites US Federal Reserve Chairman Jerome Powell. told parliament In January, it announced that Central Bank Digital Currencies (CBDCs) could coexist with stablecoins.

Young Ju also noted that BlackRock, the world’s largest asset manager, led a $400 million funding round to USD Coin (USDC) issuer Circle earlier this year.

As explained by the president,

As more USD-stablecoin use [strengthens] Due to the dominance of the dollar, TradFi institutions are allowed to invest in stablecoin projects.

But to get more trading volume, stablecoins need stronger use cases from DeFi, and investing in DeFi will be their next goal.

Young Ju is not the first cryptocurrency expert to suggest that stablecoins could drive adoption for other digital assets. Earlier this month, Fidelity Director of Global Macro Julian Timmer argued that favorable regulation of stablecoins could drive adoption of Bitcoin (BTC).

If stablecoins are regulated and seen as safe, if the headlines about stablecoins werent there not too long ago, and space is justified, investors will be more confident about network effects, Bitcoins adoption curve. , following the number of historical escrows, whether for internet use or mobile phones.

As the space is justified and scales up, I think more investors will take comfort in the fact that the promise of this widening adoption curve is actually being delivered.

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