NFT News by Thebittimes.Com

This week, a chart circulated that appeared to show stablecoin volume on the Solana blockchain declining over 90% since a series of bad events at Jump Crypto, one of Solana’s biggest trading shops.  However, whether or not Jump decreased its Solana trading activity, the claim that stablecoin volume is down 90% falls apart quickly on semantics alone. Before addressing that issue, here’s a quick summary of recent events at Solana and Jump Crypto: The CFTC launched an investigation into Jump Crypto, one of Solana’s biggest traders. The leader of Jump Crypto, Kanav Kariya, suddenly left the company. Pump.fun, a Solana meme coin generator, has gone viral, platforming countless celebrity rug-pulls. Solana announced two new types of on-chain transactions, ‘Blinks’ and ‘Actions.’ Both are non-financial codes that allow people to transact on Solana’s blockchains directly from websites and social platforms by clicking simple buttons like ‘Share’ o...

The Basel Committee for Banking Supervision has proposed new criteria for stablecoin s, aiming to differentiate them from more volatile cryptocurrencies like Bitcoin. A consultative document released on Thursday outlines 11 standards that stablecoin s 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 sector. Breaking: Central Banks can hold up to 2% of their reserves in crypto starting 1 January 2025. Bank of International Settlements BIS says: The standard will permit 2% crypto reserve exposure among banks. BIS says the global banking system's direct exposure to crypto… pic.twitter.com/9Mqfv0abFZ — MartyParty (@martypartymusic) December 13, 2023 Cryp...

Binance abruptly halts AEUR trading. The euro-pegged stablecoin experienced an extraordinary 200% surge just one day after its listing. AEUR is supposedly backed by euro fiat assets. Binance has abruptly halted trading on the AEUR stablecoin , pegged to the euro, as its value soared over 200%. The unexpected surge on December 5 raised concerns, leading to a swift response from the exchange. This incident sheds light on the risks associated with stablecoin s, particularly those with lower market caps and liquidity. AEUR’s rollercoaster ride  The AEUR stablecoin, pegged to the euro at 1:1, witnessed an unprecedented surge of over 200% on Binance, just a day after its listing. Initially trading around $1.08, mirroring the prevailing EUR-USD rate, the token’s value skyrocketed to $3.25 at 17:45 UTC. Binance promptly suspended trading due to “abnormal volatility,” indicating concerns about the stability of the coin. #Binance ha...

Despite regulatory action against Binance, a surge in Ethereum network activity and the expectation of a spot ETF approval fueled a price move above $2,000. Ether (ETH) price is trading slightly higher on Nov. 23, maintaining support above the $2,000 level after briefly retesting $1,930 on Nov. 21. Over the past week, Ether's price has increased by 2.5%, while the total market capitalization has grown by 0.5%. This uptrend can be attributed to improved decentralized applications (DApps) metrics, increased protocol fees, and Ethereum's dominance in the non-fungible token (NFT) market. To assess whether Ether can sustain its $2,000 price point, one must consider the repercussions of Binance's recent regulatory challenges following its plea deal with the U.S. Department of Justice (DoJ). Investor fear drops as Ethereum network conditions improve Binance leads in Ether spot trading volume, accounting for 30% of ETH futures contracts' open interest. The closure of Binan...

BlackRock Inc. (NYSE: BLK) is the largest asset manager in the world, and the cryptocurrency market enthusiastically awaits a US spot Bitcoin ETF. Bitcoin (BTC) investors and analysts speculate on the effects of an expected approval of this financial product that is still under the SEC’s review. Interestingly, the public document sent to the regulators discloses different risks related to the ETF. Among the “Risk Factors,” BlackRock mentions an indirect exposure to stablecoins such as Tether USD (USDT) and Circle USD (USDC). “While the Trust does not invest in stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the bitcoin market and other digital asset markets.” — BlackRock Following this introductory disclosure, the company explains what a stablecoin is and that its “market value may fluctuate.” According to BlackRock, this observed volatility exists despite the protocol’s mechanism to keep the token’s price “stable” against its pegged asset or currenc...

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 stablecoin s which are digital assets pegged to fiat currencies like the U.S. dollar. These assets “borrow the trust of the Fed,” said Barr, adding that private money needs to be well regulated in a way that allows the Federal Reserve to sufficiently enforce policies and approve compliant issuers.  Per Barr’s remarks, the onus falls on Congress to provide this framework and develop concise rules to be adopted by individual financial watchdogs. The House Financial Services Committee reportedly made headway with a stablecoin bill, however, policymakers like Maxine Waters expressed skepticism regarding some aspects of the draft. You might also like: U...

The overall stablecoin market has witnessed a staggering 35% dip in the past year and a half. Terraform’s collapse last year and the subsequent fall of its native Terra USD (UST) stablecoin triggered a chain reaction, which caused the valuation of the stablecoin sector to shrink from $189 billion in May 2022 to a mere $123 billion presently, per data from DefiLlama. Stablecoin Diversity & Market Risks As of now, the cumulative market cap of #stablecoins stands at a staggering ~$123 billion according to @coingecko and @DefiLlama. Dive with us deeper pic.twitter.com/QEZSgM0XFb — GSU | Protocol (️,) (@GSUcoin) October 4, 2023 According to analysts, the daily trading volumes of stablecoins have also been on a downward trajectory, nosediving from a peak of $150–300 billion to a mere $50 billion. Some, like Bluechip co-founder Vaidya Pallasena, attribute this dip to various factors, including the surge in U.S. Treasury yields since mid-2022, which made it difficult t...

Tether’s reported new partnership with Britannia Bank makes it the third Bahamas-based bank to join forces with the stablecoin issuer. Tether, the stablecoin issuer behind USDT, has reportedly added Britannia Bank & Trust, a private bank based in The Bahamas to process dollar transfers on its platform. It is understood Tether has instructed clients to send money to Britannia’s bank account over the last few months, according to an Aug. 29 report by Bloomberg, citing people familiar with the matter. However, it isn’t clear when Tether’s banking relationship with Britannia Bank started, but its other reported banking partners include Deltec Bank and Capital Union Bank. In recent months, United States- based cryptocurrency firms have had to increasingly look offshore for banking partners amid increased scrutiny by U.S. regulators following the shock collapse of FTX in November. Tether’s unwillingness to publicly disclose the full extent of its balance sheet and banking relationsh...

Soramitsu is developing a cross-border payment system that uses Cambodia’s CBDCs and targets Japan, India, China and Southeast Asia. Japanese blockchain startup Soramitsu is exploring new central bank digital currency (CBDC) applications with a new project on the cross-border payment system for Asian countries . Soramitsu will deploy Cambodia's CBDC and fiat-pegged stablecoin s as part of its new payment system targeting countries like India, China, Japan and regions like Southeast Asia. The new project builds upon Soramitsu’s CBDC expertise, including its involvement in the Asian CBDC project Bakong in Cambodia and Laos' Lao kip, Nikkei reported on Aug. 8. Launched in 2020, Cambodia’s Bakong is a public-private initiative allowing Cambodian residents to pay at stores or send money through a mobile app using the local currency riel or U.S. dollar. Since launch, Bakong’s adoption has expanded to countries like Malaysia, Thailand and Vietnam. By late 2022, Bakong reportedly h...

Author: Gary Ma,WuBlockchain WuBlockchain recently published a review of the regulatory assault on BUSD, in which the U.S. Securities and Exchange Commission (SEC) sued Paxos for using BUSD as an entry point for unregistered securities, and the New York State Department of Financial Services instructed Paxos to stop minting new BUSD. CZ also said, “We will adjust our products accordingly. For example, BUSD is no longer used as the primary currency counterpart for transactions “. It can be predicted that BUSD will gradually fade from the stage of stablecoin history. Given that BUSD is the ace stablecoin of BNBChain, what will happen to the stablecoin ecology of BNBChain after BUSD’s exit? Status of BNBChain’s stablecoin ecosystem According to defillama, the total market cap of the stablecoin ecosystem on BNBChain is now over $9 billion, with BUSD having a 53% share and a market cap of about $4.8 billion. This is followed by USDT with a market cap of about $3.2 billion (35%), USDC with...

An estimated $148.7 billion worth of stablecoins are still in circulation. Source: https://thebittimes.com/stablecoins-shed-38b-since-may-as-yields-plunge-projects-collapse-tbt25702.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam Category: Chain news Post by: TheBitTimes.com