News
The dual-token structure seeks to sidestep US restrictions on yield-bearing stablecoins by separating returns from the stable unit itself.
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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 American Bankers Association pressed the OCC to delay new national trust bank charters for crypto and stablecoin firms until the GENIUS Act framework is fully in place.
419 - News
Deel will enable its customers to pay workers in the United Kingdom and European Union, with a US expansion planned later.
5106 - News
The pilot programs explore wholesale settlement between institutions and real-world use cases, along with stablecoin development and tokenized bank deposits.
1672 - News
The EU plans to ban crypto transactions with Russia by shutting down all related channels, but analysts question whether the measure is fully enforceable.
1615 - News
Data observed across 66 corridors in Africa shows conversion costs from 1.5% to 19% in January, with competition driving pricing gaps.
1244 - News
European lawmakers endorsed the ECB’s digital euro plans as a way to shore up the bloc’s monetary sovereignty, while reiterating that the central bank must remain independent.
1259 - News
Spark is rolling out Spark Prime and Spark Institutional Lending, aiming to turn its DeFi stablecoin stack into institutional margin and credit lines.
1024 - News
The second meeting between crypto and the banks at the White House over the crypto market structure bill has yet to come to an agreement on stablecoin provisions.
1743 - Opinion
The GENIUS Act and MiCA could split stablecoins into cash-like instruments with statutorily protected redemption rights — or shadow deposits that reprice like credit during panic runs.
1558 - News
The Commodity Futures Trading Commission (CFTC) revised a previous staff letter to reflect the regulations in the GENIUS stablecoin framework.
2755 - News
Tether claims it has helped law enforcement in over 1,800 cases across 62 countries, freezing $3.4 billion in USDT tied to suspected illicit activity.
7366 - News
The latest announcement from the People's Bank of China follows months of flip-flopping on privately issued yuan-pegged stablecoins.
8110 - News
Tether and Gold.com are exploring options to allow the use of Tether’s stablecoins to purchase physical gold.
3214 - News
US Treasury Secretary Scott Bessent says banks and crypto may begin to offer similar products, and pledged to prevent deposit flight concerns that are stalling a key crypto bill.
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