The innovation of Crypto Assets is changing the financial landscape

Crypto Assets are no longer just a topic for speculation and discussion, but are profoundly changing the financial sector. Although early Crypto Assets were often viewed as speculative tools or instruments of crime, recent developments indicate that the field is ushering in substantial innovation.

On July 18, a bill regarding stablecoins was signed into law, providing a regulatory framework for this emerging field. Stablecoins are crypto assets that are typically pegged to traditional assets like the US dollar (. With the clarity of regulation, this industry is thriving, attracting participation from numerous Wall Street institutions. At the same time, "tokenization" is also on the rise, with the trading volume of on-chain assets rapidly increasing, covering a variety of asset types, including stocks, money market funds, and even private equity and debt.

There are different views among industry insiders and regulators regarding this transformation. Some believe that this technology could become an important pillar of the global financial system, while others are concerned that the rise of stablecoins might lead to "currency privatization." Regardless, the scale and potential impact of this transformation cannot be ignored.

Currently, the market capitalization of stablecoins has reached 263 billion USD, an increase of about 60% compared to a year ago. Forecasts suggest that the market size may reach 2 trillion USD in three years. Even large financial institutions that were once skeptical about Crypto Assets have started to venture into this field.

![The Economist: If stablecoins are truly useful, they will also be genuinely disruptive])https://img-cdn.gateio.im/webp-social/moments-2974c918603c2e855cd8fa7bf1c8bfeb.webp(

The main advantage of stablecoins is that they enable low-cost and fast transactions, making them particularly suitable for scenarios such as cross-border payments. The passage of the "Stablecoin Act" will provide more support for the development of stablecoins. Some large retailers are also considering launching their own stablecoins, which could impact the existing payment system.

Tokenized assets are another area worth paying attention to. These assets are digital representations of traditional assets that can enhance trading efficiency, particularly for illiquid assets. While some tokenized products may just be hype, there are also some products that demonstrate real value. For example, tokenized money market funds can serve both investment and payment functions, providing investors with higher returns than traditional savings accounts.

These emerging digital assets may have a profound impact on existing financial institutions and the entire financial system. Banks may face the risk of deposit outflows, while tokenized assets could change the relationship between investors and assets. Particularly in the private equity sector, tokenization may open new investment channels for retail investors, but it also brings regulatory challenges.

Regulators are struggling to keep up with this rapidly evolving field. They emphasize that even with the adoption of new forms of Crypto Assets, securities regulations still apply. However, the emergence of numerous assets with new structures complicates regulatory efforts.

Overall, Crypto Assets and related technologies are driving significant changes in the financial sector. These innovations bring both opportunities and challenges. Regardless of the final outcome, it is certain that Crypto Assets are no longer a marginal topic that can be ignored, but are becoming an important driving force for financial innovation.

![The Economist: If stablecoins are truly useful, they will also be genuinely disruptive])https://img-cdn.gateio.im/webp-social/moments-0b28699effe0ecf770f37cc8af8ec281.webp(