The recent formation of the World Stablecoin Association in Switzerland was done with the goal of creating a united front for the sector to tackle regulatory concerns and drive collaboration. Stablecoins are becoming an increasingly important, widely used medium of exchange in the cryptocurrency community, with industry leaders such as Tether (USDT) and USD Coin (USDC) enjoying immense success in 2020.
Tether hit a milestone toward the end of July, surpassing $10 billion in market capitalization as fiat currency continues to be converted into the stablecoin. Meanwhile, USDC celebrated breaking the $1 billion market cap threshold at the beginning of July, just a few months shy of its second birthday.
The success of these projects is a real indicator of the popularity of stablecoins and their utility in the cryptocurrency space, yet up until now, there was no organization to bring these stablecoins together to collaborate. The WSA is still in its infancy, having just been formed, but it is actively in talks with Tether, USDC, Dai and HUSD, hoping to bring these projects on board by the end of 2020.
A number of projects have already reportedly become members of the WSA, such as the Canadian dollar-pegged QCAD as well as decentralized finance protocol Ren, which is backed by Polychain Capital. Additionally, the Brazillian Digital Token (BRZ), Crypto BRL (CBRL), Peg Network, QCash (QC), Stably, USDK and Digitalbits (XDB) are also believed to have joined the initiative.
A united front
While some of the cryptocurrency ecosystem’s biggest projects come as the result of open-source software development, direct collaboration between industry participants that are offering similar services is not widely seen. Stablecoins peg to a certain underlying fiat currency or physical asset, and some of these are pegged to the very same asset, which puts them in direct competition. While this competition exists, the creation of the WSA seems to be getting some positive reactions from…