More than 100 unique stablecoins are currently in existence, almost double the number compiled last month, according to a new analysis and survey by blockchain entrepreneur Edan Yago and stablecoin resource Stable.Report.
Backed by traditionally stable assets such as gold or the USD, stablecoins are quickly emerging as a viable alternative to volatile cryptocurrencies, offering all the benefits of digital currencies while providing the stability required for use as a daily currency. These unique attributes have resulted in an explosion of interest within the sector with new projects emerging on a weekly basis.
Just yesterday, Aussie online payments processor Novatti Group unveiled what is believed to be the first stablecoin built on Stellar. The Novatti AUD Utility Token is expected to launch on November 19.
“The incredible growth seen in stablecoin projects, and the amount of money in the stablecoin ecosystem, has taken everyone by surprise, but it’s a clear indicator of a strong need and desire for cryptocurrencies with low volatility. We can look forward to seeing many more projects emerge in this space over the coming months, catering to many different types of customers and use cases,” said Yago, a seasoned stablecoin and blockchain entrepreneur involved in various ventures and initiatives including Ticketchain Labs, a London-based company providing a white-label B2B ticket marketplace, and Epiphyte Corporation, an enterprise software developer.
“We’re truly entering an age of digital financial revolution, but there is still more work to be done. The next stage in the development of the stablecoin space is to build a unified, decentralized ecosystem. For stablecoins to reach their true potential, we need to ensure interoperability so users of any stablecoin will be able to spend their money anywhere, with any merchant, for any purpose.”
Findings of the survey suggest that the stablecoin community is now looking to form partnerships, believing that collaboration will be essential to drive mass adoption of the technology.
83% of respondents believe that collaboration between stablecoin projects will be beneficial an industry that 42% estimate will be worth over US$100 billion in three to five years. 65% identified industry partnerships as an immediate priority for their projects.
Just this week, two of the largest cryptocurrency companies from the US, Coinbase and Circle, joined forces to establish more ground rules in the rapidly evolving stablecoin landscape.
The startups announced a joint-venture known as the CENTRE Consortium which they say aims at speeding up adoption of cryptocurrencies backed by government currencies.
Circle launched its own US-backed stablecoin known as USD Coin in May, which began trading on Coinbase’s popular cryptocurrency exchange on Tuesday.
Other results from the research found growing concerns over reputation with 89% of respondents worrying about collateral and reputational damage to the ecosystem caused by failed stablecoins, and 87% arguing that transparency is pivotal to the success of their stablecoin projects.
The survey will be unveiled at the Reform Club in London on Thursday as part of an inaugural industry event geared towards driving adoption through collaboration.