Stablecoins, tokenized assets gain as Trump tariffs loom

2 months ago

Cryptocurrency investors are progressively moving superior into stablecoins and tokenized real-world assets (RWAs) successful a bid to debar volatility up of US President Donald Trump’s wide anticipated tariff announcement connected April 2.

Increasingly much superior is flowing into stablecoins and the real-world plus (RWA) tokenization sector, which refers to fiscal products and tangible assets specified arsenic existent property and good creation minted connected the blockchain.

“Stablecoins and RWAs proceed to spot dependable inflows of superior arsenic harmless havens successful the existent uncertain market,” crypto quality level IntoTheBlock wrote successful a March 31 X post.

“However, due to the fact that these assets reside on-chain, adjacent flimsy shifts successful sentiment tin trigger important terms movements, driven by the little barriers to reallocating superior successful existent time,” the steadfast noted.

The formation to information is chiefly attributed to geopolitical tensions and planetary commercialized concerns, according to Juan Pellicer, elder probe expert astatine IntoTheBlock:

“Many investors were expecting economical tailwinds pursuing Trump's inauguration arsenic president, but accrued geopolitical tensions, tariffs and wide governmental uncertainty are making investors much cautious.”

“This is not unreasonable, arsenic adjacent though planetary maturation forecasts stay positive, maturation expectations person decreased globally successful caller months,” helium added.

The imaginable of a planetary commercialized warfare has heightened inflation-related concerns, causing a important diminution successful some cryptocurrency and accepted equity markets.

Bitcoin (BTC) has fallen 19% and the S&P 500 (SPX) scale has fallen implicit 7% successful the 2 months since Trump announced import tariffs connected Chinese goods connected Jan. 20, the time of his inauguration arsenic president.

The April 2 announcement is expected to item reciprocal commercialized tariffs targeting apical US trading partners. The measures purpose to trim the country’s estimated $1.2 trillion goods commercialized shortage and boost home manufacturing.

Investor sentiment pressured by April 2 Trump tariff announcement

Global tariff fears and uncertainty astir the upcoming announcement proceed to pressure capitalist sentiment successful planetary markets.

“Risk appetite remains muted amid tariff threats from President Trump and ongoing macro uncertainty,” Iliya Kalchev, dispatch expert astatine integer plus concern level Nexo, told Cointelegraph.

Meanwhile, RWAs reached a new cumulative all-time precocious of implicit $17 cardinal connected Feb. 3, and are presently little than 0.5% distant from surpassing the $20 cardinal milestone, according to data from RWA.xyz.

Some manufacture watchers said that Bitcoin’s deficiency of upside momentum whitethorn thrust RWAs to a $50 cardinal all-time high earlier the extremity of 2025, arsenic their accrued liquidity volition assistance RWAs pull a important stock of the $450 trillion planetary plus market.