"Stablecoins to Build the Future of Finance Through Synergy with the Tokenization Market"

Recently, amid rising global interest in stablecoins (virtual assets pegged to fiat currencies), there is an opinion that this trend could also have a positive impact on the tokenization market.

On the 2nd, blockchain trading network Theo stated, "The growth potential of the stablecoin market will drive the rapid expansion of the tokenization market."

Theo explained, "Due to the lack of yield-generating products in the virtual asset (cryptocurrency) market, there is currently a significant amount of underutilized capital," adding, "This will become a key growth point for the tokenization market going forward."

They further noted, "Currently, more than $7 billion (about ₩9.7 trillion) worth of USD-based stablecoins Tether (USDT) and USDC are stored idle in Ethereum wallets," and "This means that over $3 billion (about ₩4 trillion) in annual returns, based on 3-month Treasury rates, is being missed out on."

Theo said that as the stablecoin market grows, this could resolve current issues faced by the tokenization market. In fact, as demand increases for open and efficient financial systems, the stablecoin market is rapidly growing, especially in payments, remittances, and savings. According to DeFiLlama, over the past year, stablecoin supply grew by 58%, and some analyses suggest that the stablecoin market could expand to a scale of $2 trillion (about ₩2,747 trillion) by 2030.

Meanwhile, Theo pointed out that for the stablecoin market to expand further, ▲ connecting on-chain and off-chain capital, ▲ providing sustainable on-chain yield sources, and ▲ building infrastructure for institutional adoption are all needed.

Theo added, "Currently, most on-chain market yields stem from speculative crypto investment activities, and profitability drops considerably without them," emphasizing, "The inability to access the vast liquidity and assets of traditional markets is also a clear limitation."

Theo continued, "Theo is a project aiming to connect on-chain capital to traditional markets such as stocks and bonds and to build infrastructure for institutions like banks to participate efficiently," adding, "Such efforts could further advance the flow of future finance, enabling transparent cross-border transactions."

Previously, in April, Theo successfully raised $20 million (about ₩28.7 billion). The funding round was co-led by Hack VC and Ansers Capital, with participation from multiple venture capital firms such as Mirana Ventures and Metalayer Ventures, and angel investors from traditional finance including Citadel, Jane Street, and J.P. Morgan.