Stablecoins Set for Evolution Beyond the Dollar, Says Tether Co-Founder Reeve Collins

While U.S. dollar-backed stablecoins continue to dominate both the stablecoin market and real-world asset (RWA) tokenization, the landscape is beginning to shift, according to Tether co-founder Reeve Collins.

In a recent interview with Cointelegraph during the Dubai Web3 conference, Collins highlighted that although USD-backed stablecoins currently lead the crypto space, the future may see a broader mix of assets backing stablecoins and not just other fiat currencies.

“Stablecoins have helped reinforce the dollar’s dominance in the crypto ecosystem,” said Collins. “The U.S. dollar has essentially become the reserve currency of the digital economy. But now we’re seeing new players and it’s not just other national currencies. It’s alternative asset classes entering the space.”

Higher-Yield Assets Could Compete with Dollar-Backed Stablecoins

Collins, who is also involved with Pi Protocol, a platform focused on generating yield for stablecoin users, noted that stablecoins backed by assets such as money market funds, commodities, or even gold could soon gain traction. These alternatives, he said, may offer better returns than traditional U.S. Treasury-backed options.

“When you can back a stablecoin with something like money market funds that yield more than T-bills, or with other on-chain yield-generating assets, those options start to make more financial sense,” Collins explained. “They’ll become more attractive to users and may eventually lead the way.”

This shift, according to Collins, could mark the beginning of a more diversified stablecoin market where multiple forms of value, not just the U.S. dollar, back digital currencies.

Tokenized Assets: The Next Phase in Stablecoin Evolution

Tokenization of real-world assets is another emerging trend that Collins believes will significantly impact the stablecoin sector. With the ability to tokenize almost any asset class, stablecoins in the future could be backed by an array of investment-grade assets.

“Tokenized assets unlock a whole new set of possibilities,” he said. “From real estate to equities to precious metals all of these can be used to provide backing for stablecoins. This creates a richer, more resilient financial ecosystem where users have far more choices than just dollar-based options.”

Trump-Linked Stablecoin Signals Mainstream Acceptance

Adding to the momentum, Collins pointed to the recent launch of the World Liberty Financial (WLFI) stablecoin, a project associated with former U.S. President Donald Trump. The WLFI token was introduced on both BNB Chain and Ethereum, though trading hasn’t commenced yet.

Collins believes this kind of high-profile endorsement signals widespread acceptance of stablecoins and could pave the way for greater participation from traditional financial institutions, fintech companies, and even governments.

“When the President of the United States backs a stablecoin, it sends a powerful message,” said Collins. “It legitimizes the space and lays the groundwork for global adoption.”