News
Hana Financial Group will collaborate with Standard Chartered on digital assets following its stablecoin partnership with USDC issuer Circle earlier in March.
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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
The former Coinbase CTO says the crypto industry should build more financial tools for refugees and stateless people as conflicts and migration increase worldwide.
4220 - News
WLFI token holders must stake their tokens for at least 180 days to retain voting privileges under the recently passed proposal.
1416 - News
Ledger’s Asia-Pacific lead, Takatoshi Shibayama, has added his take as crypto and banks continue to debate whether to allow third-party platforms to offer stablecoin yields.
1537 - News
Regulatory uncertainty around stablecoins may disadvantage banks, as crypto firms continue expanding while financial institutions wait for clearer rules.
2742 - News
USDC’s market cap is approaching a record $80 billion, with one analyst linking the surge to capital flight and turmoil in Dubai’s real estate market.
4048 - News
The investor said stablecoins are faster, cheaper and more efficient than fiat payments running on traditional banking infrastructure.
3375 - News
Analysts at the investment company said the change was significant because the stablecoin “winner” will be the one people use for everyday transactions.
2762 - Newsletter
Circle stock surges despite a Wall Street and crypto selloff as stablecoins expand into finance. Canaan adds BTC while Wells Fargo eyes crypto services.
3266 - News
Yield-bearing stablecoins are growing faster than the broader market as US lawmakers remain divided over how crypto yield should be regulated.
1976 - Analysis
The Bank of England is open to fixes on its proposed stablecoin framework, but one official said it needs better feedback from crypto industry participants.
1551 - News
Hong Kong is set to issue its first stablecoin issuer licenses, with HSBC and Standard Chartered likely among a “very small number” of initially approved issuers, local media reported.
4050 - News
MetaComp’s Pre-A+ funding round, backed by Alibaba and Spark Venture, brings the total capital raised to $35 million, with aims to expand its StableX Network globally.
1724 - News
The funding will support development of a programmable execution layer designed to enable faster issuance and settlement of digital assets on the network.
1619 - News
A new FATF report says crypto exchanges operating offshore can create gaps in AML enforcement, making it harder for regulators to track illicit activity.
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