Opinion
Fintechs’ reliance on legacy financial infrastructure keeps them slow, costly and inflexible. It’s time to flip the script with a DeFi mullet. This way, companies can deliver more transparent financial services.
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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.
- News
Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
2391 - News
Lawyers for the crypto platform tied to the president's family said a call for an investigation and oversight was "fundamentally flawed."
2979 - News
Coinbase faces a $400 million phishing bill after cybercriminals managed to bribe overseas support agents to expose the personal data of the exchange’s users.
2787 - News
The GENIUS Act's failure to move to a full vote is "a bump in the road" and it will pass "in the next few weeks," says Cody Carbone, CEO of the Washington, DC,-based advocacy group.
6426 - Opinion
Banks are rapidly pivoting away from past practices of shunning crypto businesses to consider upgrading their payments infrastructure using stablecoins, eyeing them as the next frontier for payment innovation.
1176 - News
A report shows 90% of institutional players are using or plan to use stablecoins, with banks prioritizing cross-border payments and speed as key benefits.
3254 - News
The government of the tiny Pacific island of Tinian could be the first public US entity to launch a stablecoin after the region’s legislature overrode a veto of a stablecoin bill.
2494 - News
Stablecoins offer a cheaper, faster alternative to legacy global payments systems, the popular investor said at Consensus.
4976 - News
The US Senate is expected to take up another vote on the GENIUS Act within days, but it's unclear whether the bill's supporters will address concerns from Democrats.
2026 - News
Stablecoins could create new crypto use cases, especially for enthusiasts in developing countries, Aptos' head of ecosystem said.
1915 - Analysis
Crypto industry observers in Canada are concerned that their industry is being left behind without a clear framework for stablecoins.
1339 - Explained
The 10-year Treasury yield is the return investors earn on US government bonds with a 10-year maturity. Also, it serves as a reference for global interest rates.
- News
Wintermute joins at least eight other large crypto firms that announced their expansion to the US, banking on improved regulatory clarity for the Web3 industry.
6046 - News
A delay in Tether’s USDT blacklisting process allowed over $78 million in illicit funds to evade freezing, according to an AMLBot report.
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