Tag: Stablecoin

S&P’s Stablecoin Report Is a Vote of Confidence for Crypto

That said, of the eight stablecoins S&P reviewed, several received lackluster scores. Most notably Tether’s USDT, the largest stablecoin by market cap and most used crypto asset in terms of trading volume, was given the fourth-lowest score in range from 1 to 5. Meanwhile MakerDAO’s dai (DAI), popular across decentralized finance (DeFi), and the Justin Sun-backed TrueUSD, the fourth and fifth largest stablecoins, respectively, were also given low scores. Source

Global regulator tightens stablecoin standards for top rankings

The Basel Committee for Banking Supervision has proposed new criteria for stablecoins, aiming to differentiate them from more volatile cryptocurrencies like Bitcoin. A consultative document released on Thursday outlines 11 standards that stablecoins must meet to be classified as Group 1b assets, considered lower risk than unbacked digital assets. The standards ensure that the reserve assets backing stablecoins are of high credit quality, have short-term maturities, and exhibit low volatility. This move is part of the committee’s broader efforts to manage the risks associated with digital assets in the banking…

Basel Committee suggests introducing maturity limits for stablecoin reserve assets

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The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) proposed several measures on targeted adjustment to its standard on banks’ exposure to cryptoassets. A consultative document was published on the BIS website on Dec. 14.  The document is the result of the review work conducted during 2023, which helped the committee formulate amendments to its original prudential standards for banks’ exposure to stablecoins, published in December 2022. Proposed changes relate primarily to the composition of the reserve assets of stablecoins, specifically for crypto assets, classified under…

Is A Mega Bull Run Incoming? Whale Transfers Over $780 Million Of Stablecoin To Binance

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Data Nerd Data on December 13 shows that over the past 24 hours, the wallet “0xea8” moved 200 million BUSD from Binance, the world’s leading cryptocurrency exchange by client count. The whale transfer caught the attention of keen crypto users, who also noted that the transfer was soon followed by a deposit of 99.95 million FDUSD, a stablecoin supported by the exchange. Whale Address Accumulating FUSD Stablecoin On Binance That the address is shuffling and accumulating large amounts of stablecoins is noteworthy. Data Nerd Data shows that the address has transferred over…

USDT Ranked 4 out of 5 in New Stablecoin Stability Assessment From Ratings Agency S&P Global

“As we look to the future, we see stablecoins becoming further embedded into the fabric of financial markets, acting as an important bridge between digital and real-world assets,” Lapo Guadagnuolo, a senior analyst at S&P Global Ratings said in a statement. “Nonetheless, it’s important to acknowledge that stablecoins are not immune to factors such as asset quality, governance, and liquidity.” Source

German Asset Manager DWS to Issue Euro Stablecoin Along with Galaxy

To uphold the token’s value, stablecoin issuers often reserve cash or liquid assets. Amid rising interest rates, DWS is poised to manage the reserves for the new stablecoin. Deutsche Bank’s DWS Group, along with Dutch market maker Flow Traders Ltd. and crypto fund manager Galaxy Digital Holdings Ltd, is set to establish a new entity named AllUnity. The primary objective of AllUnity is also to issue a euro-denominated stablecoin, aiming to foster wider acceptance of tokenized assets in mainstream finance. The company, headquartered in Frankfurt and led by Alexander Höptner,…

S&P Global Ratings Launches Stablecoin Assessment, Slams Tether’s USDT with Negative Review

S&P Global Ratings senior analyst Lapo Guadagnuolo believes that the growth of stablecoins does not mean that they are immune to risk factors. The S&P Global Ratings introduced a stability assessment for stablecoins on Tuesday. According to S&P Global, the idea is to determine how truly “stable” the coins are in maintaining their pegs to whatever fiat they are tied to. In total, the producer of the S&P 500 assessed eight stablecoins. They include Dai (DAI), Gemini (GUSD), First Digital USD (FDUSD), Tether (USDT), Frax (FRAX), Pax (USDP), USD Coin…

S&P Global launches stablecoin ratings, ranks GUSD, USDP, USDC highest

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S&P Global has launched a stablecoin stability assessment. In its initial ratings of the eight stablecoins, none were given the top mark, but two received the lowest, based on their ability to maintain their fiat pegs. According to a statement, to establish its ratings, S&P Global first examines asset quality risks, then factors mitigating the risks, and then considers governance, legal and regulatory framework, redeemability and liquidity, technology and third-party dependencies, and track record. Factors additional to asset quality for S&P Global stablecoin assessment. Source: S&P Global S&P Global, formerly…