Tag: Stablecoin

What is USD Coin (USDC), fiat-backed stablecoin explained

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USDC offers instant payments, saves users from the cryptocurrency market’s price volatility and is audited by a regulated auditing firm, making it a transparent stablecoin. However, it does not offer price appreciation opportunities, and investors may incur high transaction and withdrawal fees while dealing with USDC. One of the key advantages of the USD Coin is the speed of the transaction. Usually, one must wait a long time to send and receive USD because institutions such as banks and their complex procedures slow down the processing of transactions. Nonetheless, USDC…

Vader will shut down stablecoin USDV, cannot find a ‘breakthrough’

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The app that produces stablecoin Vader Protocol US Dollar (USDV) will be shut down, according to a Dec. 29 announcement from its developers. We are sunsetting Vader Protocol: https://t.co/C3AKHo9URj Existing $VADER and $USDV holders, please visit the webapp to redeem the treasury: https://t.co/SnRlvpXnaQ For all technical issues related to the claim, please check in at the channel on Discord. — Vader (@VaderProtocol) December 29, 2022 Vader protocol was an algorithmic stablecoin network similar to the failed Terra network. It was supposed to encourage arbitrages to keep USDV always equal to…

How Tether Can Be a More Stable Stablecoin

The crypto economy has suffered two major crypto failures this year: the collapse of Luna/TerraUSD in May and the failure of FTX in November. In both instances, the world’s largest stablecoin, Tether, was caught in the blast radius as waves of redemptions poured into the company. It shrunk by $18 billion, or 21%, in May and June and by another $4 billion, or 6%, in November. Source

The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg – Altcoins Bitcoin News

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2022 has been an interesting year for stablecoin assets as the market capitalization of the entire stablecoin economy lost just over $28 billion in value. Moreover, more than $3 billion has been erased from the stablecoin economy during the last 23 days as BUSD shed roughly 23.3% during the last month. Over $3 Billion in USD Value Has Been Erased From the Stablecoin Economy in 23 Days The market valuation of stablecoins has continued to slide and since Jan. 2022, $28.08 billion in U.S. dollar value has left the stablecoin…

Stablecoin settlements can surpass all major card networks in 2023: Data

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Stablecoins play a very critical role in the crypto economy today and despite the recent run-down in the broader market, stablecoin volumes continue to dominate most exchanges. According to Coinmetrics data, on-chain stablecoin settlements reached over $7 trillion in 2022 and are expected to end the year at around $8 trillion. While the largest card network, Visa, processes ~$12tn/yr. Peter Johnson, co-head of the venture at Brevan Howard Digital, said that stablecoin settlements had already surpassed MasterCard and American Express. Furthermore, he predicted that in 2023 on-chain stablecoin volumes will…

US senator Toomey introduces stablecoin bill as congressional session wraps up

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Republican Senator Pat Toomey, who is set to retire from U.S. Congress at the end of the term, has used one of his last few weeks in office to introduce a new stablecoin bill, aimed at creating a regulatory framework for “payment stablecoins.” Toomey — who also serves as the Ranking Member of the U.S. Banking Committee — said the Dec. 21 bill, called the Stablecoin TRUST Act of 2022 would serve as a framework for stablecoin regulation for his fellow senators who are looking to push out stablecoin legislation…

Waves founder announces new stablecoin as USDN depegs

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Sasha Ivanov, founder and CEO of the Waves blockchain platform, is planning to launch a new stablecoin amid the ongoing crisis of the Waves-backed stablecoin, Neutrino USD (USDN). Ivanov took to Twitter on Dec. 20 to announce the USDN situation resolution plan alongside a new stablecoin project. “I will launch a new stablecoin,” Waves founder wrote, adding that there is going to be a “USDN situation resolution plan set in motion before.” He stressed that nothing new will be launched or announced until the USDN plan resolution is set in…

Waves Blockchain Founder Sasha Ivanov Promises USDN Revival Plan, New Stablecoin

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Bank of Canada emphasizes need for stablecoin regulation as legislation is tabled

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Staffers at the Bank of Canada released an analytic note on fiat-referenced crypto assets, otherwise known as stablecoins, Dec. 19. In addition to a review of mechanisms for creating and distributing stablecoins and a list of the potential risks and benefits they involve, the note expressed the authors’ support for further regulation of the crypto asset. The global market for fiat-referenced crypto assets increased 30-fold between the beginning of 2020 and mid-2022, reaching $161 billion in U.S. dollars. They are mainly used on crypto-trading platforms, the note states, but they…

Argentina’s province to issue US dollar-pegged stablecoin

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The province of San Luis in Argentina approved a legislation allowing the issuance of its own stablecoin pegged to the United States dollar. The token, dubbed the “Activo Digital San Luis de Ahorro”, will be available to all citizens of the province over the age of 18 and 100% collateralized in liquid financial assets of the province.  The bill authorizes the province to issue the stablecoin up to 2% of its annual budget. It also stipulates that assets can be transferred between parties, but it does not specify which chain…