now imagine when credit institutions can tokenize new credit and allow automated stablecoin issuance backed by that credit

in practice it's code in smart contract that wraps one token with another

i created a similar project on an Ethereum hackathon ⬇️
https://github.com/iluxonchik/eth-lisbon-hackathon-23

stablecoin issuers could intermediate the issuance process, so you don't need to get all credit institutions on-chain from the start

non-algorithmic stablecoin issuance already happens off-chain and presumes trust in a third party

this would just be faster. more liquidity

stablecoin issuers would get this new credit, purchase treasury bonds and increase the supply of their stablecoin

a new direct line from newly issued credit into treasuries 😄