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
According to the boss of the international institution owned by central banks, it is central banks that are best positioned to shape the future of money.
BIS general manager: Central banks generate trust, not big techs or “anonymous ledgers"
Kirill Bryanov
2022-01-19T19:15:00+00:00
1630
Video
Mike McGlone, senior commodity strategist at Bloomberg, is convinced that Bitcoin’s transition to digital gold will propel it to new all-time highs in 2022.
Bitcoin’s transition to a risk-off asset will propel it to $100K in 2022, says Bloomberg analyst
Marco Castrovilli
2022-01-19T16:00:00+00:00
12919
News
The total supply for USDC on Ethereum has surpassed that of Tether, putting USDT in second place on Ethereum for the first time.
USDC flips Tether on the Ethereum network
Brian Newar
2022-01-19T04:51:50+00:00
7443
News
Crypto heavyweights including Three Arrows, DCG, Delphi Digital and Crypto.com Capital joined Hubble Protocol’s funding.
Solana-based DeFi protocol Hubble raises $10M, prepares for mainnet launch
Erhan Kahraman
2022-01-18T15:00:00+00:00
4143
News
A new report from EY highlights the need for a policy change for banks to overcome business uncertainties regarding digital assets.
CBDCs and stablecoins: EY advises banks to ‘prepare for what’s coming’
Arijit Sarkar
2022-01-17T09:19:36+00:00
9521
News
The Hong Kong Monetary Authority shared a list of eight questions to seek policy-related recommendations citing five possible regulatory outcomes — no action, o...
Hong Kong begins discussions to introduce stablecoin regulatory framework
Arijit Sarkar
2022-01-15T06:25:18+00:00
6440
Markets News
Ark Invest's latest foray into the crypto sector focuses on stablecoin issuer Circle, which announced plans to merge with SPAC Concord Acquisition Corp.
Cathie Wood’s ARK ETF reportedly buys more than 69K shares of SPAC merging with Circle
Griffin Shenkel
2022-01-14T20:39:24+00:00
10210
Market Analysis
Altcoins can rally for an infinite number of reasons, but some price spikes are more historically similar than others.
Here is how one algorithmic indicator anticipated multiple phases of FXS’ protracted rally
Beau Linighan
2022-01-14T13:11:33+00:00
2179

Follow us on Facebook