Stablecoins like Tether do not offer interest yields right now, but with tokenized fiat, that could be possible one day, co-founder William Quigley said.
According to a Tether executive, tokenizing fiat currencies like the U.S. dollar is the greatest innovation since the invention of fiat and it will enable new mechanisms in global finance in the coming years.
William Quigley, co-founder of the stablecoin giant Tether and the decentralized exchange WAX, believes that global economies will likely transition to tokenized money in the next 10 years. He praised tokenization technology at a fireside chat at the FT Crypto and Digital Assets Summit on May 9.
“It’s rare when there’s a technology innovation that is so perfect there’s no drawbacks. You only enhance fiat when you tokenize it,” Quigley said, adding that tokenized fiat or even stablecoins like Tether (USDT) could one day offer earning interest or a yield on holding the digital asset.