Upon launching the eToroX wallet and exchange last year, we realized that while the appetite for crypto investments and trading is ever-growing, there are still many challenges for this industry to overcome. With such volatility in the crypto market, it’s easy to see why so many are still on the fence. This is exactly where stablecoins come into play and the reason we introduced a wide range of stablecoins and digital asset pairs, offering this much-needed stability for our users to trade and engage with this exciting new market.

Trade is more global than ever before but is still being conducted on traditional models built for nations and regions. Cross-border transactions are still subject to heavy fees and delays while relying on bank approval. Communications technology has spurred on massive developments, but current economic systems are struggling to keep up. Stablecoins are essentially an upgrade of traditional finance, making trading more accessible and far quicker. It can bridge both worlds, allowing everyone to trade freely around the globe while remaining safe and responsible.

Stablecoins, Tokenized assets & everything in between.

Stablecoins are constantly making waves, especially when Facebook’s own form of stablecoin and digital currency has dominated the crypto news last year. Libra, unlike many other stablecoins, isn’t pegged to one specific currency but rather to a group of low-volatility assets. This is just one prominent example that indicates the direction in which we are headed. Despite some of the understandable distrust and increasing scrutiny it faces, it’s easy to see why Facebook is so determined to corner this market. While governments' suspicion of this disruptive innovation is clear (when left unsupervised in the hands of a giant corporation with billions of users worldwide), its potential is clearly evident.

The term ‘stablecoin’ itself is quite broad and often used to describe different types of digital assets, designed to solve the issue of volatility. However, a variety of categories exist for coins with a similar purpose. The tokenization of assets is another example of a digital construct, with similar ambitions to solve volatility by representing real-life assets in digital form.

Tokenized assets, as we discussed in-depth, are something of a subgenre of stablecoins, both combining the stability of the traditional financial system, together with the advantages and novelty offered by crypto technology. Security tokens are another digital instrument that obtain their value from an external and tradable asset, which offers a similar solution to stablecoins.

As with every emerging technology, we’re bound to face new challenges every day. It can be hard sometimes, especially at this rapid pace, to keep track of all the new players and innovations offering their own solutions and competing for mass adoption. eToroX is a platform designed to answer the need for a more responsible, reliable and accessible way to trade crypto. Join us on Twitter to follow all the latest developments, updates, news and discussions.