Two Explanations For Venture Capital's Inexplicable Interest In Stablecoins

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Summary

This article explains why venture capital firms are investing in stablecoins despite their price-stable design. It argues that stablecoins solve liquidity and volatility problems in crypto markets and can support payments, commerce, and token exchange. It also frames stablecoin networks as a potential base for fee-generating financial services such as lending, transfers, and IoT payments. The piece suggests that investors see both short-term portfolio protection and longer-term network effects in the space.

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