State Street Mulls Creating Stablecoin, Deposit Token as RWA Tokenization Heats Up

Traditional finance heavyweights are getting increasingly involved in tokenization of traditional financial assets, or real-world assets (RWA) by placing bonds, funds or credit on blockchain rails. They do so to gain operational benefits such as increased efficiency, faster and around-the-clock settlements and lower administrative costs. Stablecoins are blockchain-based cryptocurrencies with a pegged price to an external asset. Most stablecoins are pegged to the U.S. dollar and are widely used as a tokenized version of cash.