Tether Co-Founder Reeve Collins Predicts End of Dollar Monopoly in Stablecoins

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Stablecoins backed by assets beyond the U.S. dollar — including commodities and tokenized real-world assets (RWAs) — are gaining traction, according to Tether co-founder Reeve Collins, as a Trump-linked crypto project signals global momentum.

Speaking at a blockchain event in Dubai, Collins emphasized that although dollar-backed stablecoins currently dominate the crypto landscape, new forms of stablecoin collateral are emerging quickly.

Also read: Citigroup Sees Stablecoins Powering Financial Evolution

“The stablecoin definitely helps preserve the dollar dominance, especially in the crypto space,” he noted, but added that other currencies and, more importantly, other types of asset backing are now entering the scene.

Tokenized Assets Could Disrupt Dollar-Based Stablecoins, Says Reeve Collins

Reeve Collins, who is also working with the decentralized finance platform Pi Protocol to enhance stablecoin yields, pointed to tokenized RWAs as a key disruptive force. He said future stablecoins could be backed by money market funds, commodities like gold, and other yield-generating assets that could offer users higher returns than traditional U.S. Treasury bills.

“When you can back it with money market funds, for instance, that generate a higher yield than T-bills, and other things that are coming on-chain, those will start winning,” Collins explained. He added that tokenized assets could significantly broaden the options for stablecoin backing beyond just dollars.

Also read: The Stablecoin Shake-Up: Fidelity Enters the Arena

Trump-Linked Stablecoin Signals Growing Institutional Interest

Reeve Collins also referenced the launch of the World Liberty Financial (WLFI) project, a stablecoin initiative associated with U.S. President Donald Trump. Deployed on BNB Chain and Ethereum, the WLFI stablecoin is not yet tradable but marks a significant moment for the sector, Collins said.

Also read: Democratic Lawmakers Sound Alarm Over Trump-Linked Stablecoin USD1

“A stablecoin was introduced by the U.S. President. It’s impressive,” he remarked. “It lays the foundation for the rest of the world to follow.”

Reeve Collins believes that involvement from a U.S. president could help destigmatize stablecoins and spur wider adoption among institutions, governments, and major financial technology firms worldwide.

Looking ahead, Collins envisions a more diverse and decentralized future for stablecoins. With the rise of tokenized RWAs and high-profile endorsements, the era of USD-backed stablecoin dominance may be nearing its end, potentially offering users greater returns and a broader array of financial solutions tailored to different markets.

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Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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