The funding comes as the dollar-pegged stablecoin dropped as low as $0.60 yesterday amid broader market turmoil. Source
UST Backer LFG Seeks $1B to Shore Up Stablecoin Peg: Report
Tag: Stablecoin
The Fed cites worries about stablecoin in its latest Financial Stability Report
The United States Federal Reserve Board released its semiannual Financial Stability Report on Monday. The report points to the volatility on commodities markets brought on by the Russian invasion of Ukraine, the spread of the omicron variant of COVID-19 and “higher and more persistent than expected” inflation as sources of instability. Stablecoins and some types of money market funds were singled out in the report and noted to be prone to runs. According to the Fed, stablecoins have an aggregate value of $180 billion, with 80% of that amount represented…
US Treasury Secretary reaffirms need for stablecoin regulation following UST crash
United States Secretary of the Treasury Janet Yellen called on U.S. lawmakers to develop a “consistent federal framework” on stablecoins to address risks to financial stability. In a Tuesday hearing of the Senate Banking Committee on the Financial Stability Oversight Council Annual Report to Congress, Yellen reiterated her previous position calling for a regulatory framework on stablecoins, citing a November report from the President’s Working Group on Financial Markets. In addition, the Treasury Secretary commented on TerraUSD (UST), the third-largest stablecoin by market capitalization, dropping to $0.67 in the last…
UST Stablecoin Veers Wildly From Dollar Peg. Here's the Latest
By tapping into its bitcoin reserves, UST’s salvation may have exacerbated a bitcoin sell-off that brought BTC to its lowest price since July 2021. Source
New Fed Report Repeats Warning About Stablecoin Run Risks as UST Loses Peg
The U.S. government again named stablecoins as a potential threat to the stability of the financial system, with both the Federal Reserve and a senior Treasury official saying Monday that the tokens are vulnerable to runs. Source
Investors Flee Terra’s Anchor as UST Stablecoin Repeatedly Loses $1 Peg
Deposits on the Anchor protocol plunged below $9 billion from $14 billion since Friday after Terra’s stablecoin, UST, struggles to recover to $1. ANC, the protocol’s token fell 35% during the day. Source
As LUNA’s Price Drops Over 33% in 24 Hours, Stablecoin UST Slips Below $1 Parity to $0.93 – Bitcoin News
As bitcoin dropped to fresh new lows on Monday, the price of terra (LUNA) slid by 33.3% during the last 24 hours. Moreover, the project’s stablecoin terrausd (UST) has lost stability, dropping to $0.932008 per token. Additionally, the Luna Foundation Guard’s bitcoin wallet and ethereum Gnosis safe address has been emptied. LUNA Price Puts Intense Pressure on Terra’s Stablecoin UST During the past 24 hours, more than $830 million has been liquidated from the crypto economy, and the price of bitcoin (BTC) sunk to lows not seen since January 2022.…
UST Stablecoin Falls Below Dollar Peg for Second Time in 48 Hours
The development comes after the Luna Foundation Guard announced that its massive bitcoin reserves will be used to defend the UST’s dollar peg. Source
Luna Foundation Guard Lens $1.5B in BTC and UST for Stablecoin Peg
The move comes after UST briefly lost its peg to the U.S dollar over the weekend. Source
UST Stablecoin Briefly Loses Peg, Luna Drops 10%
UST briefly lost its dollar peg on Saturday, leading to questions around whether Terra’s Bitcoin reserves will soon face their first test Source