Morgan Stanley’s cryptocurrency strategist Sheena Shah says that the banking sector could take advantage of the rising demand for stablecoin deposits.
Shah maintains that cryptocurrencies have attained an all-time high price due to the impact of government and the central banks’ stimulus.
The crypto strategist warns that with large corporations buying more cryptocurrencies, centralization could result in few participants controlling the digital assets.
She observed that altcoins were competing with bitcoin as institutional investors expand their participation in the crypto space. The popularity of altcoins is seen to emanate from their lower USD prices and more use cases.
Stablecoins futures provide an access to crypto deposit interest rates and DeFi. The stablecoins market cap has risen from $20 billion to $137.7 billion in a year on rising demand.
Crypto lenders charge above 5% in the stablecoins, which could trigger the response of the regulators and the government agencies.