Exclusive Interview: Tether Co-Founder Reeve Collins on Stablecoin 2.0, Tokenized RWAs, and the Future of Global Money
At a recent event in Dubai, Tether Co-Founder and CEO Reeve Collins sat down with us for an in-depth conversation about the rise of “Stablecoin 2.0,” tokenized real-world assets (RWAs), shifting regulation, and why he believes community-owned stablecoins are the future of global finance.1. “You’ve called this era Stablecoin 2.0. How will next-gen stablecoins differ from the USDT model — technically, operationally, and regulatorily?”Reeve Collins:Stablecoin 2.0 is a movement — an evolution of what stablecoins can be. Several factors drove this shift.The biggest issue with traditional stablecoins is opaque collateral. Users can’t always verify whether reserves truly exist because the assets sit off-chain, relying on audits and custodians.But now, the rise of tokenized RWAs changes everything. Treasuries, money market funds, and other high-quality assets are coming on-chain. This means 100% of stablecoin collateral can now be held transparently on-chain, without needing an off-chain custodian. You can simply buy tokenized treasuries and lock them in an on-chain vault.The second — and even bigger — evolution is where the yield goes.In the old system, all the yield goes to the issuer. Stablecoins like USDT and USDC have received hundreds of billions in deposits, and issuers kept the entire yield.Stablecoin 2.0 flips that model.If the community locks tokenized treasuries and mints a stablecoin, they earn the yield. We split the assets into two tokens:A yield token (the user keeps the yield)A stablecoin token (spendable like USDT/USDC)So USST, for example, works exactly like a normal stablecoin — but the yield goes back to the community, not a centralized company.Using Stablecoin 2.0 is a vote for the Web3 ethos: transparency, fairness, and value returning to the users who create the system.2. “Do you believe algorithmic or RWA-backed stablecoins will dominate in 2026? Or will we see a hybrid model?”Collins:I believe every major stablecoin will evolve toward the Stablecoin 2.0 model — on-chain collateral, and yield flowing back to users.Once people understand:The collateral is always visible and always on-chain, andThey earn the yield instead of a corporation,Why would they choose anything else?If the stablecoin functions globally the same as USDT or USDC but is fully transparent and rewards users… the market will naturally migrate there.3. “Stablecoins face intense regulatory scrutiny — MiCA in Europe, U.S. Treasury oversight, and more. What model ensures both user freedom and regulator confidence?”Collins:Regulation actually accelerates adoption. Big banks and institutions avoided stablecoins for years because of uncertainty. Now that there are clear rules — in the U.S., Europe, UAE, and others — institutions finally feel comfortable entering the market.It’s not one single policy that changes the game; it’s the fact that stablecoin regulations now exist, period.The U.S. GENIUS Act is particularly important — it opened the door for regulated, compliant stablecoin activity at scale.4. “Will we see AED- or SAR-pegged stablecoins backed by regional institutions?”Collins:Absolutely — 100%. There will be stablecoins pegged to all major global currencies, as well as tokens backed by baskets of RWAs.At STBL.com, we’re rolling out ecosystem-specific stablecoins backed by baskets of traditional RWAs.Timeline?You’ll see a Dirham-backed stablecoin within 12 months. I’m not certain about the Saudi Riyal, but the AED is coming very soon — definitely before 2026.5. “Do you believe stablecoins will eventually replace fiat?”Collins:All currencies will move onto a blockchain. It might still be fiat — USD, EUR, JPY — but transfers will be instant, global, and nearly free.Users won’t care if a transaction happens on a bank rail or blockchain rail. They’ll just care that it’s fast, cheap, and frictionless.We’re entering the utility era, not speculation. People won’t distinguish between CeFi and DeFi; they’ll just do business.6. “How do stablecoins fit into the Bitcoin ETF era — liquidity bridge or yield alternative?”Collins:Both. We’ll see:Bitcoin ETFsToken-specific ETFsETFs holding baskets of yield-bearing stablecoinsThis gives public-market investors a regulated and simple way to gain exposure to on-chain yield.Rapid-Fire Round With Reeve Collins1. Stablecoin in one word for 2026?Collins: Rocket.2. If Tether was Stablecoin 1.0, define Stablecoin 2.0.Collins:“100% on-chain collateral, and the community reaps the rewards.”3. Transparency or yield — which will users value more?Collins:They won’t have to choose — Stablecoin 2.0 gives both.4. Most misunderstood thing about stablecoins?Collins:People assume backing isn’t there — but it is.And people don’t yet understand Stablecoin 2.0. Once they do, it becomes unstoppable.5. Which country is most advanced in stablecoin regulation?Collins:The U.S. is doing well with the GENIUS Act.MiCA is good but complex.The UAE is leading in innovation and clarity.7. “If CBDCs dominate, what happens to private stablecoins?”Collins:There will still be massive demand for private stablecoins.Governments will issue CBDCs because they want control and visibility — but citizens won’t want to use them. They’ll choose alternatives that protect privacy.Only in countries where CBDCs are mandatory will stablecoins move to the “black market.” But globally? Stablecoins will thrive alongside CBDCs.8. “If you could design a perfect MENA stablecoin — USD, AED, or gold?”Collins:Yes.All of the above.The gold rush in stablecoins is coming.9. “What is the biggest lesson from Tether’s journey?”Collins:Tether survived because it delivered on every promise.Integrity is everything. If you always do what you say — even when the world tries to take you down — you’ll survive.10. “What was the greatest challenge when creating Tether?”Collins:The early legal hurdles.Launching a brand-new form of currency was incredibly risky. Understanding how to do it legally and sustainably was the hardest part.
