A USEFUL FRAMEWORK FOR UNDERSTANDING STABLECOINS: BANKING HISTORY

Summary from the TLDR Crypto newsletter

Stablecoins have rapidly evolved into a $160B global market with two primary categories: fiat-backed stablecoins and asset-backed stablecoins. Drawing parallels to banking history, fiat-backed stablecoins dominate because of their simplicity and perceived safety, while asset-backed stablecoins, issued through decentralized lending protocols, are expected to grow as onchain lending matures as they offer transformative potential for payments and financial ecosystems.