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.
Circle now hodls the record for receiving the biggest investment round taken in by a crypto entity.
Stablecoin company earns record-level investment sum for a crypto outfit
Benjamin Pirus
The ICHI ecosystem has attracted several high-profile partners, including Solana, Moonbeam, SushiSwap, 1inch Network, Loopring and Bancor.
ICHI launches ‘Decentralized Monetary Authority’ for stablecoin issuance
Sam Bourgi
Markets News
DeFi showed tremendous strength during last week’s sell-off as DEX activity and stablecoin stability prove the sector may be ready for mass adoption.
Analyst says DeFi and stablecoins held up well as crypto markets imploded
Jordan Finneseth
Massive volatility on crypto markets has been always associated with an uptick on stablecoin markets, a Tether exec noted.
Tether mints more coins to break $60 billion market cap
Helen Partz
The Federal Reserve Governor has urged the United States to be at the forefront of developing CBDC to maintain the U.S. dollar’s role as a global reserve curren...
US must win CBDC race to maintain dollar's global reserve currency status: Federal Reserve Governor
Brian Quarmby
The bloody crypto market crash has seen the number of stablecoins on exchanges tag new all-time highs, but algorithmic stable token hodlers are suffering.
Crypto crash sees centralized stablecoins retain pegs while algorithmic tokens suffer
Martin Young
The investment round was led by Parataxis Capital, with additional participation from QCP Soteria, Genesis Block Ventures, Spartan Group, NGC, CMS Holdings, Led...
HaloDAO stablecoin marketplace raises $3.5M in seed investments
Sam Bourgi
Crypto volatility is an emerging vulnerability to Canada’s financial system, while stablecoins pose risks for the country’s monetary system, the Bank of Canada ...
Bank of Canada: Crypto highly risky despite institutional adoption
Helen Partz

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