Cryptocurrencies and stablecoins are gaining growing recognition in the traditional finance (TradFi) space for their ability to streamline payments and increase efficiency in existing financial systemsIn finance, collateral management refers to the process of managing the underlying collateral securing other financial transactions, such as loans or derivatives, to mitigate credit risks and ensure smooth transaction execution. Digital assets like stablecoins are the “perfect” financial instrument for real-time collateral management, according to a recent pilot by DTCC Digital Assets, which suggests that digital assets, particularly stablecoins, could modernize and simplify this critical function. “Digital assets really are the perfect use case for collateral management, whether it be uncleared derivatives, clear derivatives, central counterparties, repo, or any other type of collateral,” said Joseph Spiro, product director at DTCC Digital Assets, during a panel at Consensus 2025. From left: Ian Allison, CoinDesk reporter, Jelena DDjuric, CEO of Noble, Kyle Hauptman, chairman of the National Credit Union Administration, Joseph Spiro, digital assets product director at DTCC Digital Assets
source: https://cointelegraph.com/news/stablecoins-perfect-use-case-tradfi-collateral-management?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound