AI and tokenization for the next-gen stablecoin – the founder of WeFi
According to Reeve Collins, founder of blockchain neo-bank Wefi, the number of viable stablecoins will grow as AI agents and account abstraction simplify administration for users, proactively manage decentralized financial operations, or implement complex trading strategies to create products. .
Collins told Cointelegraph that products like synthetic dollars, algorithmic stablecoins and other next-generation real-world assets will grow as simpler user experiences emerge — creating an ecosystem of products.
Once the technical barrier to entry is lowered, these productive tools compete for investors' attention because they are easy to use and offer productive opportunities. Collins said:
“When the application layer matures a little and AI is integrated, all the complexity in this space will disappear, then the only thing that will help you is which token to use, which one will make you more money, which one is the easiest to use.”
Most crypto users rely on fiat cash or short-term cash equivalents of traditional, over-the-counter storcoins that offer no yield and retain the basic characteristics of fiat stocks.
Current stable coin sector market capitalization. Source: Defillama
Related: Stablecoins Will See Explosive Growth in 2025 as World Embraces Asset Class
Stablecoins come under regulatory control
Although the over-stable currency was deployed to extend the dominance of the US dollar, government regulators see the current level of wealth as a threat to the financial system.
On December 6, the Financial Services Regulatory Commission of the United States (FSOC) published a report describing the systemic risks of the system coin. The authors argue that over-correlated stablecoins are vulnerable to breakout runs due to lack of adequate risk management policies.
Coinbase recently delisted Tether's USDt (USDT) stablecoin from EU markets in order to remain subject to the regulatory framework for Crypto-Assets (MiCA).
A Coinbase spokesperson told Cointelegraph that the exchange will re-evaluate its statistical coin listings at a later date and register assets that have achieved MiCA compliance.
Unsurprisingly, a recent report from Kaiko shows that MiCA-compliant stablecoins dominate the European market, with stablecoin issuer Circle commanding approximately 91% of the stablecoin market share in the region.
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