Morgan Stanley predicts banks to launch stablecoin deposits

Banks will try to capitalize on the demand for stablecoin deposits amid the exponential growth of the market, which has grown from $20 billion at the beginning of the year to the current $137.7 billion. This is stated in the report of Morgan Stanley’s lead cryptocurrency strategist Sheena Shah, CoinDesk reports.

Stablecoins provide access to over 5% crypto-deposit interest rates and open access to the DeFi sector. Shaw believes regulators and governments will inevitably respond, which in turn will cause regulators and governments to respond, Morgan Stanley said.

According to the Shah, сryptocurrencies are trading “similarly to risky assets” with the support from the leverage growth in their markets, as well as fiscal and monetary stimulus.

She also noted the building interest in digital assets from institutional investors as alternative coins outperform Bitcoin due to their lower USD prices and potential use cases. The "battle of blockchains" is likely to continue as each of them gains market share.

Moreover, as more institutional investors decide to buy crypto, the risk of an increase in the Bitcoin's concentration in the hands of a certain group of investors is growing, the strategist added.

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