Stablecoins Behave Like FX Markets as Liquidity Splits: Eco CEO
Cointelegraph
Eco CEO Ryne Saxe argues that stablecoin fragmentation creates FX-like inefficiencies, complicating large-scale institutional transactions across different blockchains.Summary
Eco CEO Ryne Saxe explains that the stablecoin market functions like a fragmented foreign exchange system, where liquidity is unevenly distributed across various blockchains and DeFi venues. Although stablecoins are pegged to the dollar, they lack perfect fungibility, leading to pricing gaps, unexpected slippage, and execution risks for institutions moving large capital amounts. To address these challenges, infrastructure companies like Eco and Circle are developing solutions to aggregate liquidity and improve routing, which are essential for increasing institutional trust and enabling predictable large-scale onchain transactions.
(Source：Cointelegraph)