If stablecoins like Tether are not backed by 100% cash reserves, they run the risk of failing if enough holders demand redemptions. Likewise, the efforts of large central banks to create their own digital currencies will be some years away. But a new brand of stablecoin is arising that promises “full-reserve” of assets held in a bank or central bank. These full-reserve digital currencies (FRDC) create opportunities for securities finance that tie in nicely to existing product development efforts.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..
