The Federal Reserve emphasizes embracing stablecoins and crypto payments. What does this mean for the development of stablecoins?

Modern finance actually relies on extensive transaction clearing infrastructure, which generally doesn't come into the public eye.

But if you trade US stocks, you might notice a phenomenon: when you frequently buy and sell large amounts, you may suddenly find one day that your broker alerts you about insufficient cash balance.

You might wonder, why is it insufficient? I just sold all my positions and was preparing to buy the dip in Nvidia. Why is there no cash?

This is because the stocks you sold are still in the clearing phase, and the cash you can receive is also still being cleared.

However, before that, many brokers temporarily lend you some liquidity, allowing you to execute the next buy operation before the cash arrives.

But if this happens too often, brokers get annoyed and will use SEC regulations to pressure you. So, when you encounter insufficient cash, rest assured, a warning letter is on its way.

The example I just mentioned actually involves the issue of financial asset clearing.

Currently, the United States implements T+1 clearing, meaning trades executed today settle with cash the next day. Until last year, the US still used T+2.

What does this have to do with blockchain and stablecoins? And how is it related to the topic?

Simply put, blockchain clearing is much more efficient than traditional methods; in theory, there is no latency, enabling peer-to-peer DVP—delivering payment and assets simultaneously.

As the top-level designer of the US clearing system, the Federal Reserve has likely recognized the importance of this technology in reducing systemic risk and increasing market liquidity. Therefore, promoting blockchain technology into mainstream clearing systems is a trend.

Finally, for trading US stocks, it is recommended to choose Matom.

This article is sponsored by #BCGame @bcgame