Tag: Stablecoin

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…

Palau’s Ripple-supported stablecoin pilot achieves positive results

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The first phase of the Palau Stablecoin (PSC) Program has been declared a success by the country’s Ministry of Finance. More work on the United States dollar-pegged national stablecoin is planned, with the goal of introducing the PSC on a national scale, according to a report released on Dec. 7. The three-month PSC project was carried out with the participation of Ripple and used the XRP Ledger central bank digital currency (CBDC) platform. The Finance Ministry recruited 168 volunteers from among government employees, who were able to spend 100 PSC…

Russia debuts cross-border payments in Tether stablecoin

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One of the first cross-border payment platforms in Russia has officially announced its launch and says it will be facilitating local legal entities to process international settlements in cryptocurrency. Exved, a local digital settlement platform — which describes itself as a “digital counterparty search system” — announced the launch on Dec. 7, stating that Russian importers and exporters can now use its business-to-business (B2B) solution to simplify the process of “foreign exchange operations and foreign economic activity.” The Exved platform specifically allows one to proceed with cross-border transactions using Tether…

French Lender Societe Generale Floats Controversial Euro Stablecoin

Unlike what JPMorgan offers with its JPM Coin, the EUR ConVertible will be available for trading, thus opening up immediate access for a wide range of investors. Societe Generale, the third-largest bank in France is set to launch its EUR CoinVertible stablecoin on the crypto exchange Bitstamp. The move represents a pioneering effort by the Paris-based bank as it will be the first bank to offer a stablecoin on a cryptocurrency exchange. For what it’s worth, the bank’s groundbreaking action will cause a major shift in the way traditional financial…

PayPal’s stablecoin ripple effect on markets

PayPal’s introduction of its native stablecoin, PayPal USD (PYUSD), has sparked heated debates within the crypto industry regarding its possible sway on payments and wider crypto adoption. While this step seems to be a big jump toward accepting cryptocurrencies in regular finance, some industry observers advise caution. They underline the hurdles and limitations that could slow down broader adoption. What is PYUSD? This initiative aims to bridge the fiat and digital currency realms for consumers, merchants and developers. PayPal CEO Dan Schulman highlighted the need for a stable digital-fiat conduit.…