Millionaire businessman Kevin O’Leary pointed out that stablecoins are more valuable than Bitcoin due to their role in the global financial system. He also highlighted the “big opportunity” that one of the Tier 1 networks could be the biggest beneficiary of customary finance companies (TradFi) operating on the chain.

Kevin O’Leary praises stablecoins over bitcoin

In Post XKevin O’Leary gave an interview to FOX in which he praised stablecoins over Bitcoin. He described BTC as a speculative asset whose price fluctuates due to its volatility. Meanwhile, the businessman called stablecoins an fascinating product in financial services, noting that they are valuable because they are backed by US treasury bills.

O’Leary further noted that the “beauty” of these stablecoins is that they can be transferred in seconds, not days. In this regard, he explained how stablecoins are on top of the current payment system because sometimes you can lose money when using FedWire or bank transfer systems.

The businessman added that these transfer systems are also very steep, which is another advantage that stablecoins have over them because you can transfer money using stablecoins at a fraction of the fee. As such, O’Leary suggested that stablecoins, not Bitcoin, could have a significant impact in the real world. However, he emphasized BTC’s advantage, noting that it is commonly referred to as digital gold.

It’s worth noting that O’Leary is a bitcoin bull despite his comment about BTC being a speculative asset. Last month revealed that after years of gaining exposure to other tokens, it has consolidated its crypto holdings exclusively in BTC and Ethereum. The businessman explained that he took this step to consolidate exclusively on BTC and ETH after a regulatory change and institutional review forced a re-evaluation.

A great opportunity for crypto networks

As part of his interview, Kevin O’Leary also mentioned that there is one large opportunity for crypto networks and the predictions are that S&P500 index could apply blockchain technology to contract analysis, inventory management and logistics. He noted that he does not know which network will benefit the most from this, because no one knows what blockchain these companies will standardize on.

However, he noted that the winner among these crypto networks will emerge when at least one company in each of the 11 economic sectors decides to standardize this blockchain network. It’s worth noting that Ethereum currently appears to be leading Bitcoin and other Layer 1 networks in this regard.

Currently, Ethereum is the leader in RWA tokenization, with the network having 67% of the market share of all tokenized assets. RWA.xyz data shows that the network’s total RWA is $18.6 billion, excluding stablecoins. Institutions have notably chosen Ethereum and other newer Layer 1 networks over the Bitcoin network, which has delays in RWA tokenization.

Featured image from Pixabay, chart from Tradingview.com