News
The proposed rule would direct payment stablecoin issuers to establish AML/CFT and sanctions compliance programs, and be able to “block, freeze, and reject” certain transactions.
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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.
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White House economists say banning stablecoin yield would add little to bank lending while imposing significant costs on users.
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The draft proposal from South Korea’s ruling party reportedly bars stablecoin interest and calls for technical standards to ensure interoperability across blockchain networks.
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UBS, PostFinance, Sygnum and others launched a 2026 sandbox to test Swiss franc stablecoin use cases and blockchain payment rails in Switzerland.
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Ethereum could see $850 billion in “new flows” by 2030 if the trend continues, according to Token Terminal.
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FDIC’s proposed rules providing insurance for corporate deposits of stablecoin issuers will not extend to the stablecoin holders, as it would conflict with the GENIUS Act’s text, the FDIC said.
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Split Capital founder Zaheer Ebtikar is closing his crypto hedge fund after strong returns to join Plasma as chief strategy officer, citing a major industry shift.
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Polymarket is upgrading its exchange infrastructure in the coming weeks, introducing new contracts and a USDC-backed token while phasing out a bridged stablecoin.
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The CEO's annual shareholder letter warned that new tech is reshaping finance, with tokenization and blockchain competitors gaining as the bank scales its own network.
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Circle’s plan to make Arc quantum-resistant comes amid increasing fears that "Q-Day" may come sooner than anticipated.
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Demand for either currency strengthens both in a reinforcing relationship, contrary to popular belief, Sam Lyman told Cointelegraph.
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A $500 billion valuation would put Tether ahead of every US bank except JPMorgan Chase, placing it among the world’s biggest financial firms.
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Circle had several hours or days to freeze illicit USDC funds in many of the 15 cases presented, but failed to act, according to ZachXBT.
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Stablecoin monthly transaction volume hit $7.2 trillion in February, surpassing the $6.8 trillion processed by the Automated Clearing House network.
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Stablecoins dominated crypto trading in Q1 as investors sought safety, while rising bot usage and declining retail flows pointed to shifting market dynamics, according to CEX.IO.
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