Asia is on the threshold of a global digital banking revolution headed by DeFi. It involves smart contracts, protocols, decentralized applications, or DApps, and also cryptocurrencies and stable coins like Tether.
Tether has become a stable choice for DeFi space. DeFi potential for enduring wider access to financial services and loans with lower costs has caused growing interest among users within the region. While there are only a few projects being developed in Asia, its potential will increase the need for reliable payment tool for business accounting, transaction processing and store of value.
Considering high volatility of most cryptos, a stable digital coin with high liquidity is essential for supporting the emerging alternative financial system.
Tether, the largest stablecoin in the world, is the indisputable market leader in this respect. Apart from this, the growing demand from Asian traders is considered as a step towards crypto market. Amidst increasing interest in DeFi, we also see the rising demand for Tether as crypto space was always fond of its projects. This has lead to that several DeFi platforms integrated Tether for developing and expanding their projects. There are also several reason for such strong interest in Tether.
First, the decentralized basis of Tether in US dollar equivalent ensures reliable основа for the ecosystem. DeFi may take the advantage of more stable coin to diversify its risks.
Acting as a popular entrance for institutional investors via off-the-counter products, Tether increases the liquidity of the industry of decentralized finance.
As a result, Tether has become the largest and most fast-growing market of DeFi’s stablecoin. Such liquidity and stability can only help attracting institutional investments necessary for further promotion in Asia.
Second, Tether’s accessibility on several blockchains makes it more suitable for lendings, considering the fact DeFi loans occur on different chains. Such chain agnosticism reflects strong interest and support Tether gets from some key blockchain communities.
One of the bright examples is Ethereum crypto community that has been supporting Tether for quite long. This lead to the number of Ethereum DeFi projects that decided to accept stablecoin for their transactions and accounts.
Third, Tether is one of the fastest ways for money transferring around the world. Previously this year it was the first stable coin integrated by Algorand 2.0 blockchain that made it possible to accelerate accounts and reduce the risks of managing traders’ assets by counterparty.
Next step for DeFi – Asian market.
Vietnam is already planning to launch DeFi protocols. Next year Singapore will introduce digital banks, while Cambodia will integrate national blockchain payment system, and China is developing its digital currency electronic payment (DCEP).”
The growing participance in the industry, especially in Asia, should remain to be the priority for blockchain initiatives.New companies and innovations should be supported and expanded. As for DeFi, it can flourish only with a stable digital coin.
While being reliable and innovative stable coin, supported by many members of the community, Tether will continue playing the key role for DeFi development in the nearest future.
