Three consultations on relevant rules will run until Feb. 8, 2024, the European Banking Authority has said. Source
EU Banking Watchdog Issues Draft Liquidity Rules for Stablecoin Issuers
Tag: Stablecoin
Stablecoin Issuer Circle Considers Going for IPO in 2024
A Circle spokesperson confirmed that a public listing is not exactly far from the firmโs aspirations. Circle, the issuer of the USD Coin (USDC) stablecoin, is reportedly in talks with its advisers over an initial public offering (IPO) for early 2024. According to Bloomberg, which cited sources with inside knowledge about Circle, the deliberations may or may not end up in a public listing. If it does go public, however, sources did not share what valuation Circle is expected to hit. But the valuation likely remains around the $9 billion…
Stablecoin issuer Circle weighing up 2024 public launch: Report
USD Coin (USDC) issuer Circle is contemplating an initial public offering (IPO) in early 2024, according to Bloomberg. A Nov. 7 Bloomberg report citing people with knowledge of the matter said the stablecoin issuer is talking to its advisers about the move but thereโs no certainty the deliberations will result in a public listing. Circle first agreed to go public in a $4.5 billion merger with Concord Acquisition in July 2021 but that deal fell through. โBecoming a U.S.-listed public company has long been part of Circleโs strategic aspirations,โ a…
Federal Reserve Vice Chair advocates for stablecoin regulations
Michael Barr, vice chair for Supervision at the Federal Reserve, called for stronger stablecoin policies in the U.S. to protect investors and set up guardrails designed to address pressing issues. Speaking at the 7th Annual D.C. Fintech Week, Barr pointed to strong interest from stakeholders regarding a framework to regulate stablecoins which are digital assets pegged to fiat currencies like the U.S. dollar. These assets โborrow the trust of the Fed,โ said Barr, adding that private money needs to be well regulated in a way that allows the Federal Reserve…
Wintermute claims NEAR backed out of $11M stablecoin redemption deal
The NEAR Foundation and Aurora allegedly reneged on an offer to convert $11 million worth of USN stablecoins, Wintermute founder and CEO Evgeny Gaevoy has claimed. In a Nov. 7 X (Twitter) post, Gaevoy claimed NEAR refused to honor a commitment to facilitate the sale of $11.2 million worth of its stablecoin USN for the FTX estate. 3. Summary To reiterate, I see this situation very clearly as: – NF committed to backstop USN and earmarked money for it– Aurora accepted the redemption in August (and only last week backtracked…
U.S. Federal Reserve’s Barr Holds Line on Central Bank Needing Stablecoin Powers
The U.S. Federal Reserve needs to regulate and enforce the law against stablecoin issuers, said Federal Reserve Vice Chairman for Supervision Michael Barr, making the federal-oversight argument that has been the major sticking point as the U.S. House of Representatives debates legislation. Republican lawmakers have leaned into a state-oversight route for companies issuing stablecoins โ the steady tokens whose value is pegged to a less volatile asset such as the dollar โ and Democrats have favored a dominant role for the Fed. Barr is decidedly in the latter camp. “We…
Moodyโs Analytics Finds over 600 Stablecoin Depegs YTD Triggered by High-Interest Rates
Moodyโs Analytics launched its AI-enabled Digital Asset Monitor meant to track the volatility and risk in DeFi amid the mainstream adoption of stablecoins by institutional investors. The fast growth of fiat-backed stablecoins to over $120 billion by retail users in the past years has attracted major attention from institutional investors seeking to tap into emerging technology to revolutionize global payment systems. However, the global stablecoins market has struggled with frequent depegs, thus attracting the attention of more regulatory scrutiny. The United Kingdom is the recent major economy to map out…
Bank of England releases stablecoin regulation plan
The UK is setting new regulations for stablecoins and the wider cryptocurrency market, aiming to enhance financial stability and consumer protection while fostering innovation. The Bank of England (BOE), working with the Financial Conduct Authority (FCA), is rolling out a plan to manage the stablecoin marketโcryptocurrencies that are usually tied to a stable asset like the British pound. This move comes right after the UK government shared its own rules for overseeing digital currencies. JUST IN: ๐ฌ๐ง Bank of England proposes allowing stablecoins as a payment option for goods and…
Moodyโs unveils service that uses AI to predict stablecoin depeggings
Moodyโs Analytics is launching a new stablecoin service that will use AI to predict probable depeggings โin a 24-hour time horizonโ while providing real-time insights about stablecoin issuersโ liquidity and stability. The stablecoin market is getting stabler, Moodyโs observed in its Nov. 6 announcement for the launch of Digital Asset Monitor.ย So far in 2023, there have been 1,914 depeggings, of which 609 were of fiat-backed large-cap stablecoins. This compares with 2,847 in all of 2022, of which 707 were large-cap. While some correlation to rising interest rates can be…
UK stablecoin regulation begins to take shape in multiple FCA, BOE documents
A suite of documents was published in the United Kingdom on Nov. 6 that concern stablecoin regulation. The Financial Conduct Authority (FCA) released a discussion paper, as did the Bank of England (BOE). To accompany those, the BOEโs Prudential Regulatory Authority (PRA) released a letter to CEOs of deposit-taking institutions, and the BOE released a โcross-authority roadmapโ to link them together. His Majestyโs Treasury set the stage for the flurry of releases on Oct. 30 with a short document previewing plans for regulation. The FCA paper explored the same ground…