Crypto Long & Short: Why real-world assets need fixed-rate loans onchain
Real-world assets already back the largest stablecoins, yet borrowing against them onchain still runs through variable-rate pools. Peter Gaffney of O2O Capital Partners explains why fixed-rate, fixed-term lending is the missing piece, and how a 5% shift in Sky and Ethena reserves could create $1.8 billion of demand for real-world assets.
This is an opinion piece by Peter Gaffney of O2O Capital Partners arguing that real-world assets (RWAs) already back major stablecoins but onchain borrowing against them still relies on variable-rate pools, so fixed-rate, fixed-term lending is the missing infrastructure. He estimates that a 5% shift in Sky and Ethena reserves toward RWAs could generate $1.8 billion of demand. It is a structural/thesis argument rather than a market-moving event, so traders should treat it as context on RWA and stablecoin collateral trends rather than a price catalyst.
