Changes in financial approaches will fuel a move toward stablecoins
Tether co-founder Reeve Collins believes that by the end of this decade, all forms of money will exist in the form of stablecoins. Speaking at Token2049 in Singapore, Collins said the shift is inevitable as finance continues to move onto blockchain rails. In his view, traditional currencies like the dollar, euro, and yen will simply be issued as blockchain-based versions.
Collins predicted that stablecoins will dominate global money transfers within the next five years. He argued that tokenized assets provide such efficiency and utility that traditional financial systems can no longer ignore them.
“A stablecoin is just money moving on a blockchain,” he explained, noting that the technology makes transactions faster, cheaper, and more transparent than current payment systems.
A key factor behind this trend, Collins said, is the change in the United States’ stance toward digital assets. He described the government’s shift as the most important development for crypto markets this year.
Previously, traditional finance institutions hesitated to explore the sector due to regulatory uncertainty. Now, Collins believes the environment is more welcoming, encouraging banks and investment firms to embrace blockchain.
According to Collins, nearly every major financial institution is now exploring its own stablecoin. He said this rush will blur the lines between centralized finance and decentralized finance, with future applications handling payments, loans, and investments in a hybrid model that combines both systems. This, he suggested, will fundamentally reshape global finance.
Collins also highlighted the advantages of tokenization, stressing that moving assets onchain increases transparency, speed, and potential returns. He called the growing push for tokenized assets one of the most powerful narratives in finance today.
Still, he acknowledged the risks. Issues like smart contract vulnerabilities, crypto hacks, and wallet security remain challenges. Collins said improvements are being made, but users will still need to choose between full self-custody and third-party custodial services, much like the current banking model.
By 2030, Collins believes these risks will be outweighed by benefits, making blockchain-based stablecoins the default for global currency.
