SUMMARY
- Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency (e.g., USD, EUR), commodities (e.g., gold), or even other cryptocurrencies. This stability makes them less volatile compared to traditional cryptocurrencies like Bitcoin and Ethereum.
- Their primary goal is to be suitable for everyday use in capital transfers by reducing the price volatility typically associated with cryptocurrencies like Bitcoin or Ethereum, making them more suitable for everyday use, such as payments, remittances, and as a store of value. Stablecoin are also becoming key players in cross-border transactions. They significantly reduce transaction costs and are more time-efficient.
- Notably, they are the 18th largest foreign holder of U.S. Treasury securities and may help fill the gap as some historically major holders (including China and Japan) continue to reduce positions.
DISCLOSURES
The material shown is for informational purposes only. Any opinions expressed are current only as of the time made and are subject to change without notice. This report may include estimates, projections or other forward-looking statements; however, forward-looking statements are subject to numerous assumptions, risks, and uncertainties, and actual results may differ materially from those anticipated in forward-looking statements. As a practical matter, no entity is able to accurately and consistently predict future market activities. Additionally, please be aware that past performance is not a guide to the future performance of any investment, and that the performance results and historical information provided displayed herein may have been adversely or favorably impacted by events and economic conditions that will not prevail in the future. Therefore, it should not be inferred that these results are indicative of the future performance of any strategy, index, fund, manager or group of managers. The graphs and tables making up this report have been based on unaudited, third-party data and performance information provided to us by one or more commercial databases. While we believe this information to be reliable, SpringTide Partners bears no responsibility whatsoever for any errors or omissions.
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