Binance Research, the market research and analysis arm of global cryptocurrency exchange, Binance, has released a comprehensive report on the development of stablecoins, including the highly anticipated moves by Facebook and Samsung into blockchain. The report, titled “The Evolution of Stablecoins” also examines the increased adoption and trading pair usage of USD-backed stablecoins, as well as the recent developments about Tether and subsequent expectations.
“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.” Binance Research said.
Binance Research thinks that companies like Facebook and Samsung are less risk-averse than traditional financial companies in terms of disrupting the payments industry. These companies also tend to execute at a faster pace. As a result, these companies may help define future key growth drivers for both the global payment and the digital asset industry.
The new report from Binance Research was published following an in-depth discussion on stablecoins during the inaugural episode of Binance Podcast. During that episode, Binance CFO Wei Zhou talked about the impact of stablecoins on finance with Leslie Tam, the Head of Binance OTC Trading, who had extensive experience in sales and trading at Merrill Lynch and Goldman Sachs.
Binance Research’s latest report also analyzed the latest developments on the stablecoin market front. The first four months of 2019 led to net inflows for most of the stablecoins, with January 2019 seeing the largest inflows over the period. The subsequent three months had more redemptions than deposits, although, on a per-stablecoin basis, there were inflows to stablecoins such as Paxos and USD Coin. The volatility surrounding Tether, which is linked to recent news, may have contributed to the inflows.
This report also calls attention to the potential effects of the expansion of collateralized stablecoins linked to currencies other than the US dollar. The developments may include:
Additional channels for global remittance
Easier to hedge against fiat currency risk
Greater price efficiency for non-USD cryptocurrency exchanges
The development of blockchain FX exchanges, either on or off-chain
Furthermore, other innovation strategies by existing stablecoin issuers are discussed such as the increasing support of additional blockchains such as Ontology (for Paxos) or Tron (for Tether).
About Binance Research
Binance Research provides professional, data-driven insights and analysis for investors in the crypto space to increase the level of transparency and improve the quality of information within the current crypto ecosystem. The team consists of professionals with a background and experiences in blockchain engineering, investment banking, strategy consulting, academic research and data science. For more information, visit: https://research.binance.com/