Stablecoins are reshaping global finance, moving from a niche crypto asset to the bedrock of a new digital economy, according to Ryne Saxe, CEO of Eco. In a recent discussion, Saxe explained that blockchain-based dollars have reached a critical turning point, largely driven by growing acceptance from traditional finance. However, he noted that significant challenges, particularly blockchain interoperability, must be overcome for this technology to reach its full potential.

The Turning Point for Digital Dollars

According to Saxe, the legitimacy of stablecoins surged over the last 12 to 18 months as major financial institutions began to endorse them. He described a coordinated effort by payment companies and crypto firms to advocate for regulatory support, framing stablecoins as simply “a better dollar.” This shift gained momentum when industry giants like Stripe and Visa started building infrastructure around them. “It’s just a dollar that moves more freely, devoid of banks and borders,” Saxe stated. “And there’s huge demand for that.”

Interoperability Remains a Key Hurdle

Despite this rapid growth, the scalability of stablecoins is hampered by liquidity fragmentation across different blockchains. While interoperability technology has improved, Saxe pointed out that “new chains, new stablecoins, new protocols are spreading faster than the interoperability tech connected to it.” He clarified that the problem isn’t a conceptual flaw but a structural one. The market is expanding faster than the infrastructure needed to seamlessly move data and liquidity, a growing pain he believes the industry must address to mature.

Creating Incentives to Unify Liquidity

Saxe believes the solution lies in creating a shared incentive layer that encourages major blockchains and stablecoin issuers to collaborate. He drew a parallel to the early days of Visa, which successfully united competing banks under a single payment network. A similar mechanism is needed for Decentralized Finance (DeFi), creating a trusted liquidity network where easing money movement grows the entire market for all participants, ultimately improving user experience and trust.

Eco’s Specialized Approach to Stablecoin Transfers

When asked about Eco’s strategy, Saxe emphasized its “full-stack” focus on the stablecoin use case. Unlike generalized platforms, Eco is built exclusively for moving digital dollars. This specialized approach optimizes the entire process, “from the user tap all the way down to the liquidity orders on the protocol,” enabling large transfers across blockchains in seconds.

The Foundation of a Tokenized Economy

Saxe defines the stablecoin economy as the fundamental plumbing for the entire tokenized financial system. “A stablecoin is the numeraire or the common denominator between the various tokenized use cases,” he explained. “It’s the only asset that’s going to get you anywhere on chain.” He predicts that because on-chain dollar movement is not restricted by banks or borders, it will one day “dwarf the U.S. economy.”

Preventing Centralization in a Stablecoin World

Addressing concerns about power concentrating around a few issuers, Saxe compared the situation to the dynamic between centralized and decentralized exchanges (DEX). While a company could build a closed-loop system, he gives the advantage to open protocols that aggregate liquidity in a permissionless and transparent way. For stablecoins to achieve global scale, he insisted, “it calls for a protocol, not a company.” While he acknowledged the current landscape feels like a “standards war,” he believes collaboration will ultimately prevail.

Money as a Choice: The Global Impact Ahead

Looking forward, Saxe sees both promise and tension. With 99% of stablecoin demand currently focused on the U.S. dollar, rapid scaling could disrupt smaller economies if their local currency flows are overtaken. This may lead to governments implementing new forms of capital controls aimed at stablecoins. Despite this, Saxe is optimistic about the philosophical shift underway. “Crypto is going to demonstrate to billions of people that money is a choice,” he concluded. “If enough people make the same choices about what money should be, then a new meme for money is created.”