US dollar stable represents more than 90% of all stable. This makes sense, because other individual stablecoins do not provide enough liquidity to be a substitute for USD exposure. Until someone comes up with an alternative, the 90 plus level may stay.
While there is no non-US dollar stable bond or coin that has liquidity commensurate with USDC and USDT, a diversified mix of stable vehicles might. A mix could include Japanese Yen exposure, Euro exposure, British Pound exposure, Mexican exposure, and Brazilian exposure. All these countries have stable bonds or currencies.
Such diversification is the future of yield based stable investing, but does it make sense now?
High uncertainty in economics and politics causes investors to shy away from investing in local assets. Regarding the US economy and the dollar, uncertainty is high. The government is shutdown, no one knows the final impact of tariffs on inflation, unemployment is on the rise, and overall policies are inconsistent. Yes, there is talk of the US Fed halting or slowing interest rates cuts, which would allow the US dollar to remain stable, but currency stability due to yield may not overcome the fundamental weaknesses of the US dollar.
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