News
JD.com and Ant Group are reportedly lobbying Chinese regulators to launch yuan-based stablecoins to boost the currency’s global role and counter US dollar-pegged tokens.
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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
USDC transactions on BitPay accounted for almost double that of USDT in 2024, but the trend has shifted in favor of Tether this year.
799 - News
Ripple has followed Circle in looking to be its own bank after Congress moved ahead with a bill to regulate stablecoin issuers under the national bank regulator.
5449 - News
The dEURO is overcollateralized by other digital assets such as Bitcoin, Ether and Monero.
2751 - Explained
With rising rates and over $100 billion in reserves, Tether turned monetary policy into profit, and it’s not alone.
- Opinion
Despite surging crypto adoption in emerging markets, the promise of financial sovereignty remains unfulfilled. Millions hold digital wealth they can’t easily use without seamless payment systems and practical off-ramps.
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AllUnity, a stablecoin joint venture by Deutsche Bank and DWS, has received a BaFin license in Germany to issue a MiCA-compliant euro stablecoin, EURAU.
1669 - News
Letitia James argues that federal stablecoin bills should stipulate that issuers be regulated like banks and that they have FDIC insurance requirements to prevent systemic financial risks.
3113 - Feature
The FATF is shaping global crypto rules from behind the scenes, with stablecoins and DeFi next in line for scrutiny.
1362 - News
Paxos launched the Global Dollar stablecoin in the EU, claiming MiCA compliance and support from Kraken, Robinhood and Mastercard under the GDN initiative.
9398 - News
Applying advanced tools for tracking illicit stablecoin transactions is necessary; still, it is not enough to mitigate the risks of mass adoption.
3330 - News
Other crypto firms are also reportedly considering applying for a national bank charter, following in the footsteps of Anchorage Digital Bank, which received a license in 2021.
2650 - News
BitMine Immersion Technologies raised $250 million through a private placement to establish an Ethereum treasury, signaling a shift from its previous Bitcoin-centric approach.
7677 - News
While seeing Circle as well-positioned in the market, JPMorgan analysts warned that competition is a potential threat to the stablecoin issuer.
6237 - News
The Bank of Korea reportedly suspended its central bank digital currency trials as participating banks are tempted by the government’s promise to allow stablecoins.
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