Why Real-World Assets Need Fixed-Rate Loans Onchain, Says O2O's Gaffney

Real-world assets already back the largest stablecoins, but borrowing against them onchain still largely relies on variable-rate lending pools. Peter Gaffney of O2O Capital Partners argues that fixed-rate, fixed-term lending is the missing component for this market. He notes that a 5% reallocation of reserves held by Sky and Ethena could generate around $1.8 billion in demand for real-world assets. The commentary appears in CoinDesk's Crypto Long & Short column.