News
After passing the GENIUS stablecoin bill, Republican leadership on the Senate Banking Committee has turned its sights to digital asset market structure.
4518
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 reported business deal would make the “Web3-native fund” one of World Liberty Financial's biggest tokenholders, with more than Tron founder Justin Sun.
1523 - News
Crypto infrastructure provider Taurus said the new contract could increase practical adoption of stablecoins, especially among businesses with sensitive transfers.
1354 - News
The EU’s joint stablecoin issuance with third countries has risks, but they are manageable under the MiCA framework, the European Commission said.
1759 - How to
Knowing how to read a stablecoin attestation report isn’t just a skill; it’s your first line of defense when verifying what’s backing your stablecoins.
2054 - News
A flaw in ResupplyFi’s contract allowed an attacker to manipulate token prices and drain $9.6 million from its wstUSR market.
1683 - News
Hong Kong updated its digital asset strategy regarding stablecoin licensing and tokenization of real-world assets by introducing its LEAP framework for market growth.
2895 - News
World Liberty Financial, the Trump-backed crypto venture, is preparing to publish its first stablecoin audit and may enable WLFI token transfers.
2022 - News
Shares of the crypto exchange are being fueled higher by rising Bitcoin prices, pro-industry regulation and steady revenue growth.
5214 - Explained
JPMD may be JPMorgan’s next digital currency. Here’s what the trademark filing reveals about stablecoins, deposit tokens and the GENIUS Act.
- News
Ethena Labs and Germany’s BaFin agreed on a 42-day USDe redemption plan, marking the end of a months-long regulatory dispute.
13036 - News
With a $151 million market cap, A7A5 has reportedly been involved in $9.3 billion of transactions with Grinex, the supposed successor to the sanctioned Garantex exchange.
1611 - News
Eight major banks in South Korea are working on a stablecoin backed by the won, aiming to protect the currency from the growing US dollar dominance.
2082 - News
BIS says stablecoins fall short on key monetary principles, warning of financial crime risks and threats to monetary sovereignty.
10625 - News
Bank of Korea governor Ryoo Sangdai reportedly said that banks should be the first to issue stablecoins, and they should do so slowly.
7688