Cryptocurrencies and Stablecoins get a growing recognition of the traditional financial space (tradfi) for their ability
Financially, collateral management refers to the process of managing the underlying construction of other financial transactions, such as loans or derivatives, to reduce credit risks and ensure proper implementation of the transaction.
Digital assets such as Stablecoins are the “perfect” financial instrument for real-time collateral management, according to a recent DTCC digital assets, which suggests that digital properties, especially stablecoins, can modernize and simplify this critical function.
“Digital assets are really the perfect case of use for collateral management, be unclear derivatives, clear derivatives, middle counterparts, repo, or any other type of collateral,” said Joseph Spiro, product director at DTCC Digital Assets, on a panel at Consensus 2025.
Collateral management requires complex manual processes due to strict requirements for locking-up collateral, which can only be released to appropriate parties at pre-set intervals.
“All of that can be done better, faster, better through digital ownership and smart contracts,” Spiro said, adding that “all manu -processing can be lost.”
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The pilot, called “great collateral experiment,” came as US policies work towards clear regulatory frameworks for stablecoins.
On May 14, at least 60 of Top Crypto founders Assembled in Washington, DC to support the guide and establishment of national changes for the US Stablecoins, or Genius Act. The bill failed To get enough support from Democrats on May 8.
The Genius Act aims to establish collateralization guidelines for StableCoin Issurs while requires full compliance with anti-money laws.
The bill was stopped on May 8 After failing to gain support from the major democratsSome of them have expressed concerns about US president Donald Trump who potentially benefit from digital assets through his crypto -related adventures.
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Stablecoins can be lending and regulating
The integration of Stablecoins into traditional FIAT-supported loans may further streamline Transa processes, according to Kyle Hauptman, chairman of the National Credit Union Administration.
The programmability of Stablecoins may make the debt repayment process clearer for all participants, currently “clunky process by which they live at the end of the month,” Hauptaman said in the same panel discussion, addition:
“Stablecoins and their programmability can make it easier.”
“Not only did we make life easier for credit unions to solve these things, you can do it for smaller amounts of money, but the borrower should get a better deal here because now this thing has some of the characteristics of a big bond release. It’s liquid now,” he said.
Another piece of law – Stablecoin’s transparency and liability for a better Ledger (stable) law – the home service committee passed on April 2 with a vote of 32-17. The bill Awaiting scheduling for debate and a floor vote in the House of Representative.
https://www.youtube.com/watch?v=HVOQJ4XS88s
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