It would seem that recently Tether has enough negativity already. Protos analysts have even calculated that since 2015, Tether has attracted the attention of the US authorities 19 times.
Now a serious competitor from Wall Street can be added to the list of troubles. According to Blomberg, major players such as BlackRock and WisdomTree are starting to offer real-world tokenized assets (RWAs) as an alternative to the largest stablecoin USDT.
During price fluctuations, crypto traders usually transfer their positions in digital assets to stablecoins which are pegged to the US dollar or other traditional (fiat) currencies to protect against possible losses. They also use stablecoins as collateral for derivatives trading. This behavior has not gone unnoticed by Wall Street corporations, which have developed a serious competitor to Tether and its stablecoin USDT.
BlackRock and WisdomTree began offering investors tokenized assets
Tokenization is the process of converting physical assets, such as real estate or artwork, into a digital form called tokens. Each token represents a part of the asset, which allows for better ownership management and easier access to investments.
Traditional stablecoins such as USDT do not provide their users with any additional benefits. Instead, new tokenized money markets offer a yield of 4-5%, provided the price of the underlying asset rises.
BlackRock is in talks with crypto exchanges about the possibility of using its tokens as collateral, and WisdomTree is actively cooperating with brokerage companies to expand the use of its tokens. In addition, the financial company Lazard plans to create tokenized funds together with Bitfinex Securities and SkyBridge Invest.
So far, we are talking only about money market funds, but with the development of RWA, users will have the opportunity to store capital in tokens for gold, stocks, and other traditional assets that will also bring profit, unlike traditional stablecoins.
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