Bank of America’s (Bac) The rate strategy team said that the US treasure treasure market is increasingly shaped by two emerging forces: the demand for stabbing for T -hiding and token and the tokenization of assets linked to public debt.
Bofa considers stablecoins as less exchange (Mmfs)Where their higher performance potential represents a competitive challenge, Wall Street bank said on Monday in a report.
Bank analysts expect the demand for stablecoin for cash bills is gradually increasing, around 25 billion dollars to $ 75 billion in the next 12 months, but not enough to significantly move the dynamics of the bill.
Stablecoins are cryptocurrencies whose value is linked to another asset, such as US dollar or gold. They play a major role in the markets of cryptocurrencies, providing, among other things, payment infrastructure, and are also used to transfer money internationally.
According to Bofa, some MMF customers show increased interest in tokenization, considering it as a defensive decision against stablecoins.
The report noted that in July, Bny Mellon (BK)Alongside Goldman Sachs (GS)Deployed technology based on blockchain to maintain property recordings in certain MMF actions.
The effort, partly stimulated by the growth of the stablescoin and the law on engineering, marked the first reversal of the actions MMF tokenized.
The stablecoins currently restricted to pay the return, the money market funds see a narrow window for Tokensize and offer competitive prices before regulatory changes or bypass eroded this advantage, added the report.
Find out more: The supply of stablecoin to grow up to $ 75 billion after the adoption of the Act on Engineering, says Bofa
