News
USDT0 expands to 11 networks with Polygon integration, while XAUT0 grows following its TON debut and HyperEVM integration.
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Stablecoin News
One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions.
The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies.
Stablecoin design takes many different forms, each with its own tradeoffs:
- Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX).
- Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD.
- Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
- One-on-one
Founding partner Sergey Jakimov explains the ideological alignment between the crypto and longevity biotech communities and how they plan to bridge the two worlds.
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Massive stablecoin deposits highlight shifting capital flows on Binance, even as Bitcoin whipsawed below $110,000 amid whale-driven selling and heavy liquidations.
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“Japan prizes systemic stability above innovation speed, while the US is signaling a bigger market-opening play,” said Startale Group’s Takashi Tezuka.
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Binance and Tether are eyeing Korea’s stablecoin rules that may boost coins pegged to the South Korean won or strengthen USD dominance.
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Tokyo-based Monex Group is weighing the launch of a yen-pegged stablecoin, with its chairman, Oki Matsumoto, citing the need to keep pace in digital finance.
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Citi’s Ronit Ghose warned that paying interest on stablecoin holdings could trigger bank outflows akin to the 1980s, driving up funding costs and credit prices.
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The trader claimed to have outperformed MEXC’s external market makers and been sidelined for being “too profitable.”
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Critics warn the US Treasury’s push to embed ID checks into DeFi smart contracts could erode privacy and hollow out permissionless finance.
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Thai police have arrested a South Korean man accused of helping a call center gang launder over $50 million in crypto into gold.
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Tariffs slam US Bitcoin miners with nine-figure bills, Polkadot courts Wall Street, SharpLink loads up on ETH and Beijing hints at a yuan-backed stablecoin pivot.
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Crypto inclusion in 401(k) plans may be more significant for Bitcoin than the 2024 launch of US spot Bitcoin ETFs, according to Bitwise’s European head of research.
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The forecast, which was published on Thursday, came amid renewed interest in stablecoins from several governments around the world.
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Beijing’s consideration of a yuan-backed stablecoin could mark a new front in the global financial system, but experts say dollar dominance, liquidity and trust are high hurdles.
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China’s split renminbi system suggests a rumored yuan stablecoin won’t mark a crypto shift.
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