Cryptocurrencies and stablecoins receive recognition in the normal financial sector (Tradfi) for his or her ability to optimize payments and to extend efficiency in existing financial systems
In funds, security management refers back to the technique of administration of the underlying collateral that secure other financial transactions resembling loans or derivatives to alleviate credit risks and ensure smooth transactions.
Digital assets resembling stable coins are the “perfect” financial instrument for real-time security management, resembling a recently from DTCC Digital Assets that digital assets, especially stable coins, could modernize and simplify this critical function.
“Digital assets are really the right application for security management, be it not enables derivatives, clear derivatives, central counterparties, repo or other sort of collateral,” said Joseph Spiro, product director at DTCC Digital Assets, during a panels at Consensus 2025.
From left: Ian Allison, Coindesk Reporter; Jelena Ddjuric, CEO from Noble; Kyle Hauptman, chairman of the National Credit Union Administration, and Joseph Spiro, product director Digital Assets at DTCC Digital Assets. Source: cointelegraph
The security management requires complicated manual processes resulting from strict requirements for blocked collateral, which might only be passed on to the relevant parties in intervals.
“All of this may be achieved higher, faster and more efficiently through digital assets and intelligent contracts,” said Spiro and added that “your complete manual processing can disappear”.
The pilot, which is often called a “great collateral experiment”, comes up with clear regulatory framework for stable coins within the USA.
On May 14th, no less than 60 of the highest founders of Krypto in Washington, DC, gathered to support the leading and establishment of the national innovation for US stable coins or genius act. On May 8, the laws didn’t receive enough support from Democrats.
The Genius Act tries to find out guidelines for the collateralization guidelines for stable coin emitters and at the identical time require compliance with legislators against money laundering.
The laws remained on May 8, after receiving no support from necessary democrats, a few of which had expressed any concerns about US President Donald Trump, which was potentially benefited from digital assets from his crypto-related firms.
Stable coins can rationalize lending and settlement
According to Kyle Hauptman, Chairman of the National Credit Union Administration, the inclusion of stable coins in traditional loans could proceed to rationalize.
The programmability of stablecoins could make the repayment technique of the loan for all participants more transparent and optimized. It is currently a “chunky process wherein they settle at the top of the month,” said Hauptman throughout the same panel discussion and added:
“Stable coins and their programming could make this very easier.”
“We haven’t only made life easier for the loan cooperatives to pay this stuff, but in addition to do that for smaller amounts of cash, however the borrower should get a greater offer here because this thing now has a few of the characteristics of a big bond output. Now it’s liquid,” he said.
Further laws – StableCoin transparency and accountability for a greater Ledger Economy Act (Stable) Act – said goodbye to the House Financial Services Committee on April 2 with 32–17. The laws is waiting for the planning for debates and a ground vote within the House of Representatives.
