Jan van Eck, the CEO of investment management firm VanEck, speculated that Ethereum will be the clear “winner” among blockchains as banks prepare for a flood of stablecoins.
During an interview with Fox News Business on Wednesday, van Eck said banks and financial services will have to adopt a blockchain to handle stablecoin transactions, and he thinks Ethereum should be the one.
“It’s very much what I call the Wall Street token. And what I mean by that is, if you think that because of stablecoins, now every bank and every financial services company has to have a way of taking in stablecoins,” he said.
Last month, the US House passed the Genius Act, which President Donald Trump then signed into law. The legislation focuses on stablecoins and is the country’s first federal law focused exclusively on payment stablecoins. Meanwhile, total stablecoin supply has just crossed $280 billion.
Ethereum or something like it will be the stablecoin blockchain
The CEO of VanEck also predicted that with many companies making efforts toward adopting stablecoins, banks will need to adapt or lose out.
A May 14 report from enterprise-grade digital assets platform Fireblocks found that 90% of institutional players surveyed are exploring the use of stablecoins in their operations.
“Companies have to employ technology to enable stablecoin usage over the next 12 months. It will take a while, but no financial services company wants to say, ‘no, don’t send me that digital dollar,’” van Eck said.
Eric Trump, executive vice president of the Trump Organization and son of US President Donald Trump, made similar remarks in April, but went a step further and said banks must adopt crypto or be extinct in 10 years.
VanEck has an Ether ETF
Jan van Eck’s comments could be expected as his company, VanEck, offers an Ether-based exchange-traded fund. The firm was given the green light to launch the investment product by the US Securities and Exchange Commission in July 2024.
It only tracks the price of Ether (ETH), and doesn’t hold it directly. As of Wednesday, it held over $284 million in assets.
Ether hit new all time high in August
Van Eck’s comments came as Ether reached a new all-time high on Sunday, crossing above $4,946, according to CoinGecko. The token was trading at $4,566, down 1% in the last 24 hours, at the time of writing.
Related: Investment advisers ’dominating’ with $18.3B in Bitcoin, Ether ETFs
Ethereum has gained significant momentum through corporations’ adopting Ether for treasuries.
Matt Hougan, chief investment officer at Bitwise, told Cointelegraph in July that treasury adoption has solved Ethereum’s narrative problem by packaging the digital asset in a way that traditional investors understand, drawing in more capital.
Over the past month, corporate treasury firms have acquired more than $6 billion worth of Ether, with BitMine and SharpLink among the most active buyers.
Magazine: ETH ‘god candle,’ $6K next? Coinbase tightens security: Hodler’s Digest, Aug. 17 – 23
Source: https://cointelegraph.com/news/vaneck-ceo-calls-ethereum-the-wall-street-token?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
