Zak Folkman Reveals Surging Institutional Demand for World Liberty Financial’s Stablecoin
Move over Tether—Wall Street’s flirting with a new stablecoin darling.
World Liberty Financial’s dollar-pegged crypto is gaining traction among institutional investors, according to industry analyst Zak Folkman. The timing? Impeccable—just as traditional finance rediscovers blockchain after years of dismissing it as 'play money.'
Why the sudden interest? Three words: yield, liquidity, and—let’s be honest—FOMO. With Treasury yields stagnating, asset managers are scrambling for alternatives that don’t involve explaining memecoins to pension fund trustees.
The kicker? World Liberty’s compliance-first approach actually makes regulators blink less aggressively. A rare feat in crypto’s usual 'ask forgiveness later' playbook.
One hedge fund MD quipped: 'We’ll take our 4.8% APY without the SEC subpoenas, thanks.' Ouch—shots fired at DeFi’s wild west.
Bottom line: When suits start adopting stablecoins faster than they adopt Zoom backgrounds, you know the game’s changed. Whether that’s progress or just financialization-as-usual? Well, that’ll cost you an advisory fee to find out.
Folkman anticipates USD1 becoming the biggest stablecoin by market cap
Crypto treasury firms have become popular since the success of Strategy, the company Michael Saylor leads. The firm has over $60 billion worth of Bitcoin on its balance sheet and a market capitalization surging to over $100 billion.
Folkman noted that several companies admire Michael Saylor and his accomplishments. This is particularly true of his strategy and his promotion of companies keeping their crypto reserves.
Goodfood Market Corp., Semler Scientific Inc., and TRUMP Media & Technology Group Corp. are some companies that have revealed plans or started their own efforts to hold cryptocurrency.
Meanwhile, companies are changing the Strategy Playbook by using alternative tokens instead of bitcoin when implementing their plans.
For instance, Upexi raised $100 million to purchase the solana token last week to keep in its treasury, while Sharplink Inc. holds $425 million worth of the second-largest cryptocurrency, Ether.
Folkman also weighed on the future potential of World Liberty’s USD1 stablecoin, valued at approximately $2.1 billion. Notably, the largest stablecoin is USDT, from Tether, which has about $156.8 billion in circulation.
Based on Folkman’s speculations, they have tackled the challenges that a company will encounter, and now it is just a matter of time before USD1 becomes the biggest stablecoin by market cap.
He further anticipated that everyone WOULD come to this conclusion when they witness several developments in the upcoming months.
With the Genesis Act, one of the main US stablecoin laws, set to pass into law, digital dollar-pegged assets have become even more attractive to investors.
Fintech firms adopt the growing trend of launching stablecoins
Apart from public companies showing interest in stablecoins, fintech firms have adopted this trend and aim to follow World Liberty Financial’s lead in launching stablecoins.
Fiserv announced that it plans to release a stablecoin, amid increasing interest in the token from US companies as the cryptos MOVE toward the mainstream.
The announcement followed the US Senate passing a milestone stablecoin bill that analysts said could represent a turning point in the crypto oversight debate and a breakthrough for a sector stuck in regulatory limbo for years.
The fintech company said its stablecoin, FIUSD, will be embedded into its existing banking and payments platform by the end of the year. The company added that FIUSD will use stablecoin infrastructure delivered from Paxos and Circle Internet.
Shares of Circle, the issuer of the second-largest stablecoin by market value, were up 15%, and Fiserv and PayPal were up 2.3% and 1.7% respectively.
Stablecoins are tied to currencies such as the US dollar and are meant to maintain a consistent value from reserves held. Once a niche corner of crypto, they have become popular for their ability to protect from price swings.
Fintech companies and traditional banks use stablecoins more frequently to make cross-border payments easier, speed up transactions, and expand access to digital finance.
Analysts at TD Cowen mentioned that they view the launch as a sign of Fiserv’s skill in quickly innovating and utilizing its central role between banks and merchants to connect old and new payment systems.
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