While stablecoins offer desirable characteristics such as lower transaction costs, faster settlement, and higher yields than traditional financial (TradFi) alternatives, existing models still face many problems.

1. Fragmentation: According to RWA.xyz, there are currently 28 active stablecoins pegged to the US dollar. The problem with having so many stablecoin options is that while they all represent tokenized dollars, they are not interoperable. This fragmented landscape is similar to the pre-central banking era, where each bank issued its own banknotes. But DeFi lacks a central bank to create monetary uniformity. Some projects, such as M^0, are attempting to solve the interoperability problem by developing decentralized crypto-dollar issuing platforms.
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