Stablecoin Infrastructure Must Prepare for Bank Failures, Says Frgmnt CEO

Aurelien Roussel, CEO of Frgmnt, argues that fiat-backed stablecoins will always carry some exposure to traditional banking risks. The 2023 bank collapses made clear that on-chain assets ultimately depend on off-chain institutions.

In emerging markets the coins function mainly as a practical dollar access tool, shielding savings from local currency depreciation rather than serving as DeFi yield vehicles.

Roussel expects the next phase to embed blockchain invisibly into payroll, remittances and corporate settlements. He advocates modular designs so the system can withstand the failure of any single banking partner.

Based on information from cryptonews.net