Collateral, not yield, will decide which stablecoins win

Share This Post

Artem Tolkachev is Chief RWA Officer at Falcon Finance, which builds collateral-first dollar infrastructure.

What actually determines whether a stablecoin gets used, not just parked, is whether the venues where people trade, borrow and hedge will accept it as collateral. Can you post it as margin on an exchange? Does it get a sensible loan-to-value in a lending market? Can it move across venues without losing so much to haircuts that it becomes irrelevant? Collateral acceptance is the line between a dollar token that sits in a wallet earning a coupon and one that does real work in the financial system.That difference, parked versus used, isn’t academic. A parked token is inert capital; a token the market accepts as collateral lets its holder trade, borrow and hedge without selling it, which is the whole reason to hold a dollar on-chain rather than dollars in a bank.

This is the variable almost no one is pricing in. We are about to add tens of billions of dollars in new stablecoin supply on the assumption that supply equals genuine adoption. It doesn’t. If that supply arrives while exchange and venue risk teams leave their collateral frameworks exactly where they are, the result won’t be adoption, it will be stranded collateral: tens of billions of dollars that are technically live, dutifully earning their 3%, and going precisely nowhere.

Related Posts

Crypto investors are looking past market-cap rankings and back to fundamentals

Perpetual-futures volumes still run at a multiple of spot...

Safepal security vulnerability exposes data of 39,798 customers

The breach has impacted 39,798 customers who placed orders...

Ethereum Devs to Narrow 66 Proposals tied to 2027 Hegotá Upgrade

Ethereum developers are currently reviewing 66 proposals to narrow...

Crypto’s week in 5 stories

That may happen. But last week showed that right...

Wall Street rewrote crypto’s rules with $11.2 billion in checks

In the first six months of 2026, the crypto...

Paul Tudor Jones’ investment firm adds to IBIT stake after year of selling

Tudor Investment, founded by billionaire investor Paul Tudor Jones,...