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Tag: Stablecoins

  • AUREUS Digital Technologies Celebrates GENIUS Act as Catalyst for a New Era of Stablecoin Innovation and Growth

    Landmark Legislation Opens the Path for AUREUS to Pursue Regulatory Approval of Its Trusted Digital Dollar and Plans to Separately Facilitate Gold-Backed Stablecoins


    REDWOOD CITY, Calif., July 24, 2025 (Newswire.com)
    –
    AUREUS Digital Technologies (AUREUS) proudly welcomes the signing of the GENIUS Act by President Donald Trump – a landmark federal law establishing the first regulatory framework for fully-backed stablecoins. This legislation not only reinforces the U.S. dollar’s leadership in a programmable global economy, but also paves the way for a new era of growth driven by next-generation platforms like AUREUS.

    “This is more than regulation – it’s the green light for a stablecoin revolution,” said Nitin Soni, co-founder and CEO of AUREUS. “AUREUS innovations are uniquely positioned to accelerate this shift, bringing secure, scalable, and transparent digital-dollar solutions to people, financial institutions, and sovereign markets worldwide.”

    At the heart of this transformation is AUREUS EXCHANGE – intended to be the world’s first fully compliant marketplace for trading USD-backed stablecoins and digital assets, pending regulatory approvals that AUREUS intends to seek. Launching soon in the U.S. and key global jurisdictions, the platform is engineered to meet the GENIUS Act’s 1:1 reserve mandates and transparency requirements while delivering real-time, cross-border financial utility.

    AUREUS Digital Technologies: Powering the Next Phase of Stablecoin Growth

    Built for Regulatory Scale: The AUREUS modular tokenization engine is designed to enable rapid creation and deployment of stablecoins with built-in compliance, governance, and auditability – accelerating time to market without compromising regulatory oversight.

    Verifiable Trust: While stablecoins issued under the GENIUS Act will be backed exclusively by U.S. dollar and federal reserve notes, AUREUS will separately facilitate the purchase, sale, and secure custody of physical gold for customers.

    In connection with these services, AUREUS also plans to issue digital assets that serve as evidence of physical gold held in custody. All AUREUS stablecoins will be transparently backed by the U.S. dollar, U.S. Treasury instruments or physical gold, featuring real-time blockchain-verified attestations and automated reserve tracking.

    Hybrid by Design, Built for Regulatory Trust: As AUREUS prepares to submit its initial regulatory filings in the U.S., its finance stack is engineered to combine centralized oversight with decentralized access, enabling seamless wallet integration, institutional-grade custody, and programmable compliance that bridges traditional finance with Super Apps and Web5 innovation.

    Infrastructure for Global Access: As AUREUS prepares for launch – and pending the receipt of necessary regulatory approvals, AUREUS aims to offer U.S. dollar-backed stablecoins to both developed markets and underserved regions, combining strong security with user-friendly design to make digital finance safe, inclusive, and compliant around the world.

    “The GENIUS Act validates our architecture and accelerates our mission,” said Arvind Jain, co-founder, CTO and Head of Engineering of AUREUS. “Our tech stack is built to support everything this bill stands for – making it easy to issue, trade, and trust stablecoins not just in the U.S., but globally.”

    As the world embraces stable, digital value, AUREUS would be leading with infrastructure that anchors innovation to trust, fusing the strength of gold, the resilience of the dollar, and the reach of programmable finance. The GENIUS Act clears the path. AUREUS would be building the highway.

    About AUREUS Digital Technologies

    AUREUS Digital Technologies is a next-generation platform transforming gold into a programmable, globally accessible digital asset. By combining gold-backed stability with blockchain, AI, and resilient cloud infrastructure, AUREUS enables regulatory-grade tokenization, trusted stablecoins, and hybrid financial products built for real-world impact.

    Designed for both retail and institutional investors, the platform eliminates traditional barriers to access while delivering real-time intelligence, security, and global scalability. By redefining gold’s role in modern finance, AUREUS is advancing transparency, financial inclusion, and sustainable economic growth through the creation of trusted digital financial infrastructure.

    “Safe Harbor” Statement

    Certain information set forth in this press release contains forward-looking statements. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Aureus undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change.

    Trademarks: Aureus stablecoins SC-USDD, AURYX, AURYX-10, and AURYNT are trademarks of AUREUS Digital Technologies Inc.

    Source: Aureus Digital Technologies Inc.

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  • What is the Key to Bitcoin’s Next Bull Rally? Analysts Chip In

    What is the Key to Bitcoin’s Next Bull Rally? Analysts Chip In

    Bitcoin’s price has stagnated since its March peak due to tight U.S. monetary policy, which has reduced stablecoin supply, according to CryptoQuant analysts.

    “The reason for Bitcoin’s inability to rally further is fundamentally due to the tightening monetary policy in the U.S. since March 2022,” they reported on July 3.

    As a result, the overall stablecoin supply started to decline in early 2022 when the Federal Reserve started raising interest rates.

    US Monetary Policy Impact

    Stablecoin supply started to climb again in late 2023, but rates have remained stubbornly high at over 5% for over a year.

    The analyst noted that BTC has been rising due to an expectation of lower interest rates and fiscal policy bringing liquidity to markets.

    They concluded that an “increase in stablecoin liquidity and circulating supply through more accommodative monetary policy in the U.S.” is necessary for Bitcoin to enter a bull market.

    Until then, Bitcoin may continue to trade sideways or correct, suggesting investors should adopt a long-term perspective.

    Lower interest rates mean that cash is less attractive as an investment and high-risk assets such as crypto or tech stocks become more attractive.

    The Fed is expected to lower interest rates in September, providing economic data remains positive.

    Bitcoin has oscillated between the high $50K level and the low $70K level for the past four months.

    Stablecoin Ecosystem Outlook

    Stablecoin market capitalization has steadily increased over the past few months. It currently stands at $161 billion, representing around 7% of the total crypto market. This is less than half of what it was at its peak in 2022.

    Tether remains the market leader by a clear margin, with a market share of almost 70%. Moreover, the USDT supply is currently at an all-time high of $112 billion.

    Its closest competitor, Circle, has a market share of around 20% with a circulating supply of $32.5 billion. Maker’s DAI is the third largest stablecoin with a $5 billion market cap and a share of just over 3%.

    In June, Circle CEO Jeremy Allaire predicted that stablecoins could account for 10% of “global economic money” within the next decade or so.

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  • Here’s The Key To Reviving Bitcoin’s Bull Market: Analyst

    Here’s The Key To Reviving Bitcoin’s Bull Market: Analyst

    With Bitcoin trading sideways over the past few months, traders are waiting for their signal to re-enter the market before crypto reclaims its bullish momentum from earlier this year.

    In a Wednesday memo, an analyst from CryptoQuant highlighted one signal worth looking at: stablecoin liquidity.

    Stablecoins: The Key To Driving Bitcoin Higher

    “The bottom line is that in order for #Bitcoin to rally in earnest, we need to see an increase in stablecoin liquidity and circulating supply” wrote analyst Mac.D to CryptoQuant.

    According to the author, Bitcoin hasn’t been able to break new highs above $73,700 since mid-March 2024 due to tightening monetary policy conditions in the United States for the preceding two years.

    Higher interest rates around the globe harmed liquidity across the economy, including both stablecoin liquidity and the total circulating stablecoin supply.

    Stablecoins are the fiat currency pegged crypto tokens that exchanges use as dollar equivalents in the crypto trading economy, and which traders often hold in preparation to buy BTC at a later time.

    Tether (USDT) – the world’s most popular stablecoin which is pegged to the US dollar – saw its market cap contract from $83 billion in April 2022 to $65 billion in November 2022.

    Its total value quickly recovered to over $82 billion in Q2 2023, and steadily climbed again to over $112 billion over the past three quarters, rising alongside Bitcoin’s price during these periods. That said, total stablecoin liquidity has remained mostly flat during Q2 2024, and so has Bitcoin’s price.

    Liquidity Conditions And Bitcoin’s Price

    “The reason why the price of Bitcoin has been rising over the past year is, first, the expectation of lower interest rates and, second, the fact that fiscal policy, unlike monetary policy, has continued to bring liquidity into the market,” the analyst wrote.

    In a recent essay, BitMEX co-founder Arthur Hayes argued that continued fiscal spending from the U.S. government is here to stay, which will keep pushing up prices for assets like Bitcoin.

    Still, analyst Mac.D believes the market’s next leg-up will also require more “accommodative monetary policy” in the United States. Right now, markets predict that the Federal Reserve may only begin cutting interest rates in September.

    “Until we see these signals, Bitcoin is likely to trade sideways or correct further, and investors would be wise to take a long-term view of the market,” Mac.D concluded.

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    Andrew Throuvalas

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  • Chainlink Chosen as Technology Partner for HKDR Hong Kong Dollar Stablecoin

    Chainlink Chosen as Technology Partner for HKDR Hong Kong Dollar Stablecoin

    On May 7, the crypto oracle solutions provider announced that RD Technologies was integrating Chainlink CCIP and Proof of Reserve to power its Hong Kong dollar stablecoin.

    Chainlink’s Cross-Chain Interoperability Protocol will be integrated to enable secure and reliable cross-chain transfers of HKDR and easier access to the new stablecoin.

    Additionally, the firm is also adopting Chainlink’s Proof of Reserve (PoR) to help provide reliable on-chain verification of HKDR’s reserve backing, according to the announcement.

    Chainlink Delving Deeper Into RWA

    The collaboration aims to enable more businesses and merchants to settle payments in HKDR, enjoy faster and cheaper cross-border payments, and enable reliable transfer of tokenized real-world assets (RWA) using the stablecoin.

    The Hong Kong-based fintech firm stated it had made agreements with “several globally renowned cross-border payments, virtual assets, and wealth management players” to use the HKDR for cross-border payments.

    RD Technologies CEO Rita Liu said that the “integration will help facilitate the adoption of HKDR in cross-border payments, real-world assets tokenization, and other on-chain finance applications.” It will also help facilitate the development of Hong Kong as a global Web 3 and virtual assets hub, she added.

    Colin Cunningham, Head of RWA and Alliances at Chainlink Labs, added:

    “Settling transactions across chains with HKDR will accelerate the adoption of tokenized assets and enable faster, more cost-efficient cross-border payments.”

    Chainlink CCIP allows smart contracts to securely access data from external systems to facilitate trustless data connectivity between blockchains.

    In April, Chainlink launched a new CCIP-powered cross-chain bridge app called ‘Transporter’ to improve token transfer safety.

    On May 6, Chainlink’s adoption update revealed that there were seven integrations of four Chainlink services across three different chains: Arbitrum, BNB Chain, and Polygon.

    LINK Price Outlook

    The network’s native token, LINK, did not react to the news, however. The asset had dropped 2% on the day in a decline to $14.28 at the time of writing amid a broader altcoin market retreat.

    LINK prices have been weak recently, having lost almost 30% over the past month as crypto markets corrected from their mid-March highs.

    LINK remains down 73% from its May 2021 all-time high of $52.70 and has failed to gain much traction in 2024 despite Bitcoin hitting a new all-time high.

    However, analysts have predicted that the altseason is just around the corner when this asset usually performs well.

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  • Stablecoins Surge: USDT Leads $400 Million Inflows

    Stablecoins Surge: USDT Leads $400 Million Inflows


    The cryptocurrency industry has witnessed a significant change in the movement of stablecoins, offering valuable observations into the evolving dynamics of the market. Recent data from IntoTheBlock and CryptoQuant has shown a surge in stablecoin inflows into exchanges, reaching record highs in January.

    Notable inflows were observed on January 2nd ($478 million), January 3rd ($489 million), and January 26th ($673 million). However, this trend has since reversed, with outflows dominating the market.

    On January 30th, there was a substantial outflow of $412 million, marking the second-highest daily outflow recorded in the month, following the $541 million outflow on January 19th.

    USDT Leads Stablecoin Rally, But Caution Persists In Crypto Market

    An analysis of the 24-hour trading volume of the top stablecoins on CoinMarketCap reveals that Tether (USDT) and USD Coin (USDC) collectively accounted for approximately 90% of the total volume. Tether, in particular, has been dominant in terms of flows, with a 24-hour trading volume exceeding $42 billion, while USDC’s volume stood at around $6 billion.

    Taking a closer look at the flow of USDT through CryptoQuant, it was found that there was a substantial inflow of $373 million on January 26th, followed by a prevailing trend of outflows, with over $83.4 million observed at the time of writing.

    USDTUSD currently trading at $0.99897 on the daily chart: TradingView.com

    Experts suggest that the rise in stablecoin inflows onto exchanges, particularly the $478 million on January 2nd, could indicate traders’ and investors’ readiness to participate in the market or their desire to safeguard their funds during uncertain times.

    Conversely, the shift towards outflows may signal caution or preparation for potential market volatility. Additionally, the substantial inflow of stablecoins, especially USDT, could indicate increased buying power and intentions to establish positions in the cryptocurrency space.

    Stablecoins Surge, Signal Investor Preparation

    The increase in stablecoin inflows onto exchanges can be interpreted in two ways. Firstly, it may indicate that investors and traders are preparing to enter the market. By moving their funds into stablecoins, they can quickly transition into other cryptocurrencies when they perceive favorable opportunities. This suggests a readiness to participate and take advantage of potential market movements.

    Secondly, the rise in stablecoin inflows may also reflect a desire to keep funds in a secure manner, particularly during uncertain times. Stablecoins offer stability by being pegged to a specific asset, such as the US dollar, which can be appealing to investors seeking to protect their capital in times of market volatility. This cautious approach can be seen as a way to safeguard funds and mitigate risks in an unpredictable market.

    Tether Records Nearly $3 Billion Profit 

    Meanwhile, Tether announced a “record-breaking” $2.85 billion in quarterly profits as the market capitalization of its main token, USDT, approached $100 billion.

    According to a blog post by Tether, the interest gained on the company’s enormous holdings in US Treasury, reverse repo, and money market funds—which support the USDT stablecoin—account for around $1 billion of the earnings in the most recent quarterly attestation report that was released on Wednesday. Everything else was “mainly” due to the growth of Tether’s other assets, like gold and bitcoin (BTC), the stablecoin issuer said.

    Featured image from Wccftech, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.



    Christian Encila

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  • Another Factor That Might Positively Influence the Bitcoin Price Besides the Halving

    Another Factor That Might Positively Influence the Bitcoin Price Besides the Halving

    Tether’s (USDT) circulating supply has long been a subject of intense speculation regarding its potential impact on the price of Bitcoin.

    Recent findings from CryptoQuant suggest a significant correlation between the supply of USDT and movements in Bitcoin’s price, particularly since the latter part of 2022.

    USDT Influx Fuels Bitcoin Surge

    The analysis indicated that the circulating supply of USDT has surged by approximately 30 billion, with each surge traditionally coinciding with a positive impact on Bitcoin’s price trajectory. This trend suggests that the influx of USDT supply tends to stimulate growth in the value of Bitcoin, indicating improved liquidity in the market.

    The increase in USDT supply has been accompanied by a surge in Bitcoin’s price, reflecting heightened investor interest and anticipation surrounding factors like the potential introduction of a spot Bitcoin ETF. This data analysis highlighted the strong correlation between USDT supply dynamics and fluctuations in Bitcoin’s price, contributing to a more dynamic and voluminous trading environment for the cryptocurrency.

    “Data analysis reveals a high correlation between USDT supply and Bitcoin price movement, leading to an increase in volume and a dynamic environment for the Bitcoin price.”

    As such, an increase in USDT supply could typically correspond to a rise in Bitcoin price, and conversely, a decrease in USDT supply often coincides with a decline in Bitcoin price.

    Additionally, there appears to be a delay of approximately one month between changes in USDT supply and corresponding changes in Bitcoin price, implying that shifts in USDT supply may serve as a leading indicator for future trends in Bitcoin’s price.

    USDT’s Growing Dominance

    USDT has maintained its position as the dominant stablecoin in the market, nearing a total asset value of $100 billion after experiencing remarkable growth over the past six years. Since the start of 2018, its market capitalization has skyrocketed by an astonishing 6,560%.

    Paolo Ardoino, the CEO of the stablecoin issuer, attributed this success to a strong performance in the fourth quarter. Meanwhile, USDT has been capitalizing on high yields from US Treasury bills and allocating a portion of its profits towards purchasing Bitcoin.

    The findings are interesting, given that Bitcoin halving years and those that follow have historically been very bullish for BTC.

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    Chayanika Deka

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  • Here's How 2024 Will be Pivotal for Bitcoin in the Stablecoin Arena: CoinShares

    Here's How 2024 Will be Pivotal for Bitcoin in the Stablecoin Arena: CoinShares

    The emergence of Bitcoin-based stablecoins could make 2024 a pivotal year for the leading digital network, according to analysts at European alternative asset management firm CoinShares.

    In its Outlook 2024 report, the firm explained that the effects of a stablecoin settlement on Bitcoin would be numerous, including the enhancement of BTC’s monetary properties and the acceleration of its global adoption.

    The Need for a Bitcoin-Based Stablecoin

    With Bitcoin in its second decade of existence, conversations about the network have moved from the awareness into the merit phase. People no longer wonder what cryptocurrencies are but how such assets solve real problems.

    While native assets are still a “contentious topic,” according to CoinShares, users have become familiar with digitized crypto dollars, as it is easy to imagine the benefits of tokenizing the USD. The success of stablecoins can be seen in their growth within four years: a 1,100% increase to a market cap of over $123 billion and transfer volumes totaling $5 trillion in the past year.

    Despite the success of these assets, they are facing significant challenges. One such is almost all stablecoins being created on centralized or unstable blockchains, making users vulnerable to systemic failures like the Terra ecosystem collapse.

    These issues have presented the need for developers to launch stablecoins on Bitcoin, as the network has the longest history, greatest stability, least technical debt, and strongest assurances.

    A Pivotal Year

    Although there is a need for stablecoins on the Bitcoin blockchain, the path to such a feat is technically challenging, as BTC was designed without the flexibility to support external assets like dollar-pegged tokens natively.

    Regardless, CoinShares’ analysts believe 2024 will be pivotal for Bitcoin in the stablecoin arena as viable development projects are predicted to emerge as accessible tools. These projects would “rival” the speed and cost of other stablecoins while inheriting the fundamental stability of Bitcoin infrastructure.

    This year, Bitcoin projects focused on competing in the stablecoin sector will likely be made accessible to users, while plugins will integrate stablecoin spending, paving the way for continued usage growth.

    “We find a successful integration likely both increases transaction demand and onboards a new set of users to Bitcoin. Secondly, stablecoins could very well act as a gateway, introducing bitcoin to a broader audience of users, who perhaps have not yet explored its potential and properties as money,” analysts added.

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  • Morgan Stanley Warns 'Paradigm Shift' in Crypto Could Impact US Dollar Leadership

    Morgan Stanley Warns 'Paradigm Shift' in Crypto Could Impact US Dollar Leadership

    In a recent publication, Morgan Stanley’s Head of Digital Assets, Andrew Peel, has cautioned about a potential “paradigm shift” in the perception and use of digital assets, emphasizing its potential impact on the U.S. dollar’s global dominance.

    Peel highlights that the rising interest surrounding assets such as Bitcoin, the surge in stablecoin volumes, and the emergence of Central Bank Digital Currencies (CBDCs) pose a significant challenge to the traditional role of the dollar in global finance.

    Nation States Target Dollar Diversification

    Despite the U.S. contributing 25% to global GDP, the greenback holds a dominant position, constituting nearly 60% of global foreign exchange reserves.

    However, this dominance is facing increased scrutiny, with some nations exploring alternatives. Recent U.S. monetary policies and the strategic use of economic sanctions have prompted nations to reconsider their dependency on the dollar.

    The European Union is actively working to increase the euro’s role in international trade, particularly in energy transactions and essential commodities, as part of a broader strategy to enhance the euro’s global standing.

    Meanwhile, China is advancing the yuan in international trade through initiatives like the Cross-Border Interbank Payment System (CIPS), challenging the dollar-centric Clearing House Interbank Payments System (CHIPS).

    Inter-governmental organizations like BRICS, ASEAN, SCO, and the Eurasian Economic Union also express interest in using local currencies for trade invoicing and settlements. This shift indicates a clear move toward reducing dollar dependency globally.

    Digital Currency Revolution Causes Shift from US Dollar

    As nations seek alternatives to the U.S. dollar, digital currencies and stablecoins are emerging as viable options, impacting international trade and finance. This shift, influenced by U.S. foreign and monetary policies and global competition, drives the move from the dollar in cross-border transactions and central bank reserves.

    Bitcoin has played a key role in kickstarting the digital asset movement. Recently, U.S. regulators approved spot Bitcoin exchange-traded funds (ETFs), potentially signaling a shift in global perception and use of digital assets.

    Stablecoins have become crucial in facilitating digital asset trading. The global adoption of dollar-linked stablecoins is growing, with transactions nearing $10 trillion in 2022, challenging payment giants like PayPal and Visa.

    The rapid adoption of stablecoins has also fueled global interest in CBDCs, with 111 countries actively exploring them as of mid-2023. Peel recognizes CBDCs’ potential to establish a unified standard for cross-border payments, reducing reliance on intermediaries like SWIFT and dominant currencies like the U.S. dollar.

    Peel concludes by urging global investors to closely monitor these developments, adapting their strategies to leverage opportunities in international markets and transformative financial technologies.

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  • Solana Stablecoin Volume Reaches Record High Of $300 Billion In January

    Solana Stablecoin Volume Reaches Record High Of $300 Billion In January

    According to the latest on-chain data, the Layer-1 network Solana has hit a significant milestone in terms of the transfer volume of stablecoins this month.

    Solana Overtakes Tron In Stablecoin Transfer Volume

    Data from the blockchain analytics platform Artemis shows that the stablecoin transfer volume on Solana has already surpassed $300 billion in January. This is the largest transfer volume recorded by stablecoins on the Layer-1 blockchain in a single month.

    To put this figure into context, the Solana network registered $297 billion in stablecoin volume in the entire December. Meanwhile, the blockchain’s stablecoin transfer volume was about $11.56 billion in January 2023, reflecting an over 2,500% growth in the past year.

    Stablecoin transfer volume across various blockchains in the past year | Source: Artemis

    From the chart above, it is clear that Solana’s stablecoin activity has been on a steady rise since October, increasing by more than 650% in the past few months.  This growth has also impacted the network’s share in the stablecoin market, with Solana now boasting about 32% market share.

    Unsurprisingly, Ethereum leads the market for stablecoins, with its transfer volume already reaching almost $317 billion in January. Meanwhile, the Tron network trails Solana in third place, with a stablecoin volume of roughly $240 billion.

    On Thursday, January 18, Paxos revealed the launch of its regulated stablecoin, USDP, on the Solana network. According to DefiLlama data, USDC remains the dominant stablecoin on the Layer-1 network, with a market cap of over $1 billion.

    SOL Price Overview

    Despite Solana’s burgeoning network activity, the price performance of its native token SOL has somewhat dampened in the past few weeks. As of this writing, the Solana token is valued at $92, reflecting a 0.6% decline in the last 24 hours.

    This sluggish performance in the past day underscores the altcoin’s challenges since the turn of the year. After reaching a multi-month high of $124 at the end of 2023, the SOL price has largely struggled to hold above the $100 mark.

    According to data from CoinGecko, the Solana token is down by more than 5% in the past week. Meanwhile, the coin has declined by about double that figure since the beginning of 2024.

    Nevertheless, SOL maintains its position as the fifth-largest cryptocurrency in the sector, with a market capitalization of more than $40 billion.

    Solana

    Solana price faces downward pressure on the daily timeframe | Source: SOLUSDT chart on TradingView

    Featured image from Dreamstime/Aivaras Sakurovas, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Opeyemi Sule

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  • USDC Wallet Growth Soars 59% Despite Headwinds: Circle

    USDC Wallet Growth Soars 59% Despite Headwinds: Circle

    Increasing interest rates, regulatory actions, financial insolvencies, and instances of fraud have significantly contributed to shrinking the overall digital asset economy in the past year. The world’s second-largest stablecoin – USDC – wasn’t immune to these forces either.

    The total circulating supply has declined from approximately $45 billion to about $25 billion by the conclusion of November 2023. The rise in interest rates in conventional markets elevates the opportunity costs associated with holding USDC, as holders do not accrue interest on their holdings.

    Despite this, the number of USDC wallets with a balance of at least $10 has grown 59% in the last year alone, rising above 2.7 million.

    USDC’s Recovery

    According to a report titled “State of the USDC Economy,” Circle revealed that its stablecoin has been used to settle over $12 trillion in blockchain transactions since its introduction in 2018.

    The report highlights the stablecoin issuer’s role in facilitating more than $197 billion in transfers between the traditional banking system and blockchain networks in 2023, accomplished through the minting and redeeming of USDC.

    The statistics also reveal 595 million transactions facilitated by USDC from January through November 2023 despite being riddled with many setbacks, starting from the banking crisis.

    A notable feature, Circle’s Cross-Chain Transfer Protocol (CCTP), introduced in April 2023, has already made a significant impact by conducting 66,500 transactions. This protocol is designed to reduce friction, improve safety and security, and ultimately reduce costs when transferring USDC across different blockchains.

    In a statement, Jeremy Allaire, Co-founder and CEO of Circle, said,

    “While we are still in the early stages of this mission, this year’s State of the USDC Economy Report details a set of unequivocal indicators for growing momentum. As regulatory clarity for stablecoins continues to emerge across every major financial market center, and as mainstream financial institutions, fintechs, internet firms, and enterprises begin adopting this technology, USDC is poised to play a central role in the new internet financial system.”

    Moving Forward

    Several factors led to this decline, but it is essential to highlight the de-pegging of USDC that ensued after the failure of Silicon Valley Bank. Circle, having lost access to many of its other banking partners, had a substantial portion of its reserves tied up with Silicon Valley. The failure of SVB posed a threat to the stability of the stablecoin.

    USDC managed to restore its peg following the Federal Reserve’s action to compensate depositors affected by the failures of several banks.

    Meanwhile, the entity behind USDC submitted confidential paperwork for an initial public offering (IPO) in the United States earlier this week, intending to become a publicly traded company. The IPO is expected to move forward upon completion of the review process by the Securities and Exchange Commission (SEC), subject to market conditions and other considerations.

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  • Stablecoin Takeover? Record Tether 71% Dominance Raises Questions About Crypto Future

    Stablecoin Takeover? Record Tether 71% Dominance Raises Questions About Crypto Future

    Tether, the issuer of the ubiquitous USDT stablecoin, cemented its dominance in 2023, ballooning its market share to a staggering 71%. This explosive growth, however, comes with a chilling undercurrent: a United Nations report linking USDT to a surge in cybercrime and money laundering in Southeast Asia.

    Glassnode data paints a stark picture of Tether’s ascent. Its market capitalization reached a record $95 billion in January 2024, fueled by a 40% increase in USDT supply over the past year. Meanwhile, competitors like Circle’s USDC saw their market share shrink, with USDT now commanding over 7 times the circulation of its nearest rival.

    Tether Market Dominance Soars 

    USDT dominance shown in green. Source: Glassnode

    Paolo Ardoino, Tether’s new CEO, has prioritized cooperation with U.S. law enforcement. The company boasts of freezing wallets linked to sanctions lists and recovering over $435 million in illicit funds.

    However, the UN report casts a shadow on these efforts, detailing how USDT facilitates “sextortion,” “pig butchering” scams, and underground banking across Asia.

    While Tether has proactively banned over 1,260 addresses linked to criminal activity, the sheer volume of illicit transactions raises concerns about the effectiveness of these measures.

    USDT market cap currently at $94.904 billion. Chart: TradingView.com

    Critics point to Tether’s opaque reserve backing as a breeding ground for misuse, calling for greater transparency to combat money laundering.

    Tether’s Reign At Risk: Regulatory Challenges

    The stablecoin market, once touted as a bridge between traditional finance and the crypto world, now faces a reckoning. Tether’s dominance is undeniable, but its association with criminal activity threatens to erode trust and trigger stricter regulations.

    Tether total assets nearing the $95 billion level. Source: Gabor Gurbacs X post.

    Meanwhile, Circle’s recent IPO filing hints at a potential shift in the landscape. With regulatory scrutiny intensifying, Tether’s future hinges on its ability to address concerns about transparency and combat illicit activity.

    Can it clean up its act and maintain its crown, or will the tide turn towards its more transparent rivals? Only time will tell if Tether’s reign as the king of stablecoins will weather the storm of controversy.

    With its historic 71% market share, Tether’s reign over the stablecoin realm is undeniable. Yet, the shadow of illicit activity threatens to eclipse its success.

    As regulators sharpen their focus and competitors like Circle step into the ring, the question looms: will Tether clean house and retain its crown, or will this be the tipping point for a stablecoin revolution, reshaping the future of crypto itself?

    Only time will tell if Tether’s dominance signals a bright new era for digital currencies or serves as a cautionary tale, paving the way for a more transparent and accountable crypto landscape. The gloves are off, and the fight for the future of stablecoins is just beginning.

    Featured image from Shutterstock

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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  • Tron's Balancing Acts: USDT Dominance Peaks as DeFi Experiences a Renaissance: Report

    Tron's Balancing Acts: USDT Dominance Peaks as DeFi Experiences a Renaissance: Report

    Stablecoin total value locked (TVL) on the Tron blockchain experienced a slight decline in the early part of the second half of 2023 but ultimately surged to reach record highs of approximately $48 billion.

    This is according to a recent report by Reflexivity, which revealed that around 94% of this total value belonged to USDT.

    Tron Emerges as Top Choice for USDT

    Reflexivity Research stated that Tron has maintained its position as the leading blockchain for USDT, surpassing the Ethereum mainnet by approximately 8% in terms of TVL.

    Tether, among the earliest fiat-backed stablecoins in the crypto market, initially launched on Bitcoin’s Omni chain, later expanded to Ethereum, and is currently predominantly present on Tron and Ethereum.

    A noteworthy distinction lies in the composition of stablecoins on Ethereum, which exhibits a more balanced mix of USDT and USDC on-chain, while the former overwhelmingly dominates the Tron ecosystem.

    This dominance is further evident in Tron contracts, where the USDT Token contract consumes the majority of on-chain “energy,” accounting for approximately 95.6% of all contracts. This suggests that Tron is primarily utilized for USDT transactions with limited diversification.

    Despite a moderate increase in USDT volume throughout 2023, a particularly intriguing trend is the 130% growth in the number of USDT holders over the same period, according to data compiled by TronScan.

    Tron’s DeFi Renaissance

    The Tron ecosystem witnessed back-to-back exploits. Justin Sun-acquired crypto exchange Poloniex was hacked in November last year. Attackers reportedly stole nearly $125 million after breaching the hot wallets.

    Weeks later, crypto exchange HTX and blockchain protocol Heco Chain were compromised for a cumulative $97 million in different digital assets.

    Despite this, Tron’s decentralized finance side of things remained stable.

    Citing data from DeFiLlama, Reflexivity observed that the TVL in DeFi on the Tron blockchain witnessed a growth of approximately 43% throughout the second half of 2023, reaching a total of around $8.1 billion.

    This increase solidified Tron’s position as the second-highest protocol in terms of TVL, trailing behind Ethereum with approximately $29 billion and surpassing Binance Smart Chain (BSC) with $3.1 billion. The ascent was primarily led by the leading DeFi protocol, JustLend, which contributes to approximately 80% of the total TVL on the Tron network.

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  • Tether's USDT Latest ATH, Plans for 2024, and Diverse Projects: CEO Ardoino

    Tether's USDT Latest ATH, Plans for 2024, and Diverse Projects: CEO Ardoino

    Tether, the company behind the popular stablecoin USDT, announced a significant milestone in its growth, with its market value reaching $91 billion.

    It was also revealed that over 2023, the firm has added approximately $4 billion in excess reserves to its stablecoin’s consolidated reserves, showcasing its commitment to stability and resilience in the volatile digital currency market.

    Tether’s Ardoino Reveals Company’s Growth and Plans

    The announcement was made by Tether’s CEO, Paolo Ardoino, who detailed the company’s journey and its plans for the future.

    Ardoino reminisced about his first public speech at the CryptoCompare conference in March 2020. Describing the event as a moment of innovation storytelling for Tether, he reflected on the challenges and successes the company has faced.

    “Tether evolved. We listened to our community, we learned and improved,” Ardoino shared, highlighting the company’s commitment to resilience and innovation.

    The CEO also highlighted the success of Tether’s USDT as not just a financial instrument but an innovation that has gained the trust of millions worldwide, particularly in emerging markets and developing countries.

    Tether’s focus on providing financial services to unbanked communities has been a notable part of its mission, addressing the neglect of these communities by traditional banking sectors.

    Tether’s expansion isn’t limited to its stablecoin operations, as it has been actively investing in and co-founding various innovative projects.

    These ventures include Holpunch, which is working on a new Internet layer and runtime for P2P applications; Synonym, focusing on making Bitcoin products accessible to the masses; Northern Data, aligning with Tether’s vision of accessible AI infrastructure; and Tether Energy, making strides in the Bitcoin mining space and developing a P2P/IoT platform named Moria for operational efficiency.

    “These investments are just the tip of the iceberg,” Ardoino hinted, suggesting that more announcements are to come.

    Tether CEO Ardoino Forsees Exciting 2024

    Ardoino expressed excitement for 2024, hinting at the launch of new products and the consolidation of existing ones, emphasizing his pride in leading a team of brilliant, dedicated, and passionate individuals.

    “We plan to launch several new products and consolidate existing ones,” he stated, emphasizing the company’s forward-looking vision.

    Reflecting on the journey, Ardoino concluded with gratitude and anticipation, “It’s a long way to the top if you wanna Rock ‘n Roll.”

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  • Stablecoins Become the Preferred Quote Currency in Recent Market Trends: Glassnode

    Stablecoins Become the Preferred Quote Currency in Recent Market Trends: Glassnode

    In 2023, digital assets experienced an exceptional year, witnessing a remarkable surge in Bitcoin prices by over 172%, with a correction of less than 20%. In addition to Bitcoin and Ether, capital inflows in stablecoins also remained positive.

    The market surpassed crucial technical and on-chain pricing models, and October emerged as a pivotal moment for institutional capital movement, according to Glassnode’s recent analysis.

    Stablecoins in 2023

    Over the last two years, the market capitalization of global stablecoins has exceeded $100 billion, and USDT’s market cap alone has accounted for over $90 billion. The growth is primarily propelled by their use in applications related to decentralized finance (DeFi), trading, and liquidity management.

    Despite being mired in controversy, Glassnode observed a notable shift from the previous cycle in terms of the role played by stablecoins in market dynamics. They have emerged as the “preferred quote currency” for traders and a primary source of market liquidity.

    The aggregate supply of stablecoins has been decreasing since March 2022, declining by 26% from its peak due to regulatory pressures with the US Securities and Exchange Commission (SEC) charging BUSD as a security, capital rotation (favoring US treasuries over non-interest bearing stablecoins), as well as diminishing investor interest during the bear market.

    However, October has marked a turning point, with total stablecoin supplies hitting a low at $120 billion and starting to grow at a monthly rate of up to 3%. This marks the first expansion in stablecoin supply since March 2022 and indicates a likely resurgence of investor interest.

    “The relative dominance between various stablecoins has also undergone significant shifts between 2022 and 2023. Previously rising stablecoins like USDC and BUSD have seen their dominance shrink significantly, with BUSD entering redemption-only mode, and USDC dominance falling from 37.8% to 19.6% since June 2022.”

    Stablecoin Lobbying Efforts

    Stablecoins serve as a bridge between the crypto and traditional financial systems. Despite the aforementioned controversy, this cohort of digital assets has garnered attention from not only the Biden administration but also bipartisan congressional lawmakers.

    Tether, the issuer of the largest stablecoin commanding a 72.7% market share, reportedly allocated $760,000 for lobbying in the first three quarters of 2023, doubling the expenditure from the previous year.

    Circle Internet Financial, the fintech company and issuer of USDC, also increased its lobbying spending to $300,000 during the same timeframe.

    Additionally, crypto exchange Coinbase invested $2 million in lobbying activities covering various crypto-related issues, with a notable focus on stablecoins. Traditional financial entities like Bank of America and Visa, along with the US Chamber of Commerce, have similarly contributed to lobbying efforts.

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  • Stablecoins Value Dip in Recent Bull Market: Sixdegree Research

    Stablecoins Value Dip in Recent Bull Market: Sixdegree Research

    According to research by Sixdegree, stablecoins have not seen a significant increase in value during the recent bull market.

    Their current total value is $129.5 billion, slightly lower than the $139 billion recorded in December 2022.

    Ethereum vs. Tron in 2023

    This trend can be attributed to the contrasting developments on two major blockchain platforms: Ethereum and Tron.

    The former has seen a substantial decline in its stablecoin value, dropping by 34% since 2022 to the current number of $69.4 billion. In contrast, the value of stablecoins in Tron has surged by  57.7% during the same period.

    Delving deeper into Ethereum’s stablecoin dynamics, the distribution of these assets reveals some interesting patterns.

    Half of the stablecoins on Ethereum are held in personal wallets, with 30% in centralized exchanges (CEXes) and only 5.5% in decentralized finance (DeFi) protocols. This represents a significant shift from the peak of January 2022, when DeFi protocols held about 25% of Ethereum’s stablecoins.

    The leading stablecoins on Ethereum, namely USDT, USDC, and DAI, have also experienced diverse trends. USDT has remained relatively stable with a 23% increase, whereas USDC and DAI have seen decreases of 47% and 30%, respectively.

    In contrast, Tron’s market dynamics offer a different narrative. Around 30% of its stablecoins are in CEXes, 0.2% in DeFi protocols, and the majority, approximately 70%, are held in personal wallets. This distribution suggests a distinct user behavior on Tron, leaning more towards personal wallet storage, unlike Ethereum.

    TRON’s Stablecoin Market Thrives in 2023

    In 2023, the value of stablecoins on the TRON network experienced a notable surge attributed to various factors.

    One key driver was the expanding user base of TRON, with approximately 40% of the 5 million weekly stablecoin users opting for TRON in the first half of 2023. This preference led to substantial transaction volumes, reaching $70 billion every week.

    This surge is particularly notable in emerging markets, such as Latin American countries, where TRON’s low transaction costs and high speeds are appealing, especially in regions with high inflation rates like Argentina.

    TRON has also become a significant player in the DeFi and stablecoin sectors, with over $8 billion in its DeFi ecosystem and a substantial increase in stablecoin issuance.

    Lastly, the cost and efficiency benefits of using it, such as lower transaction fees, have drawn users to TRON, making it the leading blockchain for stablecoin transfers.

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  • Paxos Announces USDP Stablecoin Expansion on Solana; Unveils Public Launch Date

    Paxos Announces USDP Stablecoin Expansion on Solana; Unveils Public Launch Date

    The New York-based stablecoin issuer – Paxos – announced a strategic expansion of its stablecoin issuance to the Solana blockchain platform, which was previously exclusive to Ethereum. Paxos said it plans to make USDP available to the public on Solana starting January 17, 2024.

    This move marks a significant milestone for Paxos in the competitive stablecoin landscape, where rivals such as Circle and Tether are also racing for market dominance.

    Paxos’ Solana Expansion

    Paxos obtained approval from the New York Department of Financial Services (DFS) to expand USDP from Ethereum to Solana following a thorough examination. However, the company has not disclosed the duration of the review process.

    In an official statement, Walter Hessert, Paxo’s Head of Strategy, commented,

    “The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers. Paxos has set the standard for oversight, reserve management, and issuance in the stablecoin market. By integrating USDP with Solana, we’re making it easier for anyone to get and use the safest, most reliable stablecoins.”

    Paxos became the first crypto firm to to secure a trust charter under the newly implemented digital asset regulatory framework by DFS in 2015. The company received DFS approval to issue its first stablecoin in 2018, dubbed ‘Paxos Standard,’ which was later rebranded to USDP three years later.

    Before the latest Solana expansion, Paxos only issued USDP on Ethereum due to restrictions by the DFS. Over the years, the company has roped in major financial players.

    In June, Paxos entered into a partnership with online marketplace Mercado Libre to introduce the Pax Dollar (USDP) stablecoin to users in Mexico. Transactions were set to be facilitated by MercadoPago, a digital wallet app developed by Mercado Libre.

    Subsequently, in August, the multinational fintech giant PayPal launched the US dollar-denominated stablecoin, PayPal USD (PYUSD), in association with Paxos.

    Regulatory Hurdles

    Paxos faced regulatory scrutiny when it was disclosed in February of this year that the DFS was conducting an investigation.

    Although the specific reason was not initially disclosed, it seemed to be linked to its involvement with BUSD, a stablecoin created in partnership with the crypto exchange Binance. Shortly afterward, the regulator directed Paxos to cease the issuance of the token.

    This development dealt a significant blow to Paxos, given that more than 95% of its revenue was derived from this partnership.

    Amidst the regulatory turbulence, a relatively new crypto exchange, EDX Markets, terminated its collaboration with Paxos, which was supposed to serve as the former’s crypto custodian.

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  • Tether Reveals Partnerships with Secret Service, FBI

    Tether Reveals Partnerships with Secret Service, FBI

    Tether, the creator of the popular USDT stablecoin, has publicly disclosed letters sent to key U.S. legislative committees revealing its partnerships with the Secret Service and FBI.

    This update comes after Tether’s recent measures, which included implementing a wallet-freezing policy aimed at individuals on the U.S. Specially Designated Nationals list, freezing over 200 wallets.

    Tether’s Proactive Stance to Uphold Crypto Integrity

    Under Paolo Ardoino’s newly appointed CEO’s leadership, Tether has ramped up efforts to combat the misuse of its stablecoins in illegal activities.

    These letters, addressed to the U.S. House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs, highlight Tether’s unwavering commitment to preserving safety and maintaining active collaborations with legal authorities.

    The letters were shared with Senator Cynthia Lummis, a widely recognized cryptocurrency supporter within the Senate. Additionally, the letters were dispatched to the heads and the highest-ranking members of the previously mentioned committees.

    The recent letters by Tether’s CEO elaborate on the methods used to prevent individuals from exploiting USDT. Tether claims to have successfully frozen 326 wallets, controlling 435 million USDT, in collaboration with law enforcement agencies.

    This includes the recent freezing of wallets under sanctions from the U.S. Office of Foreign Asset Controls (OFAC). According to blockchain statistics, Tether froze 161 Ethereum wallets, though 150 currently contain no USDT.

    According to Ardoino, Tether has also onboarded agencies like the Department of Justice, U.S.Secret Service and is also in the process of doing the same with the Federal Bureau of Investigation (FBI)

    Tether Addresses Crypto-Terrorism Allegations

    This move comes in response to an October 26 letter written by Senator Cynthia M. Lummis and Congressman J. French Hill to U.S. Attorney General Merrick Garland. It accused Binance and Tether of aiding in crypto-funded terrorism by violating sanctions laws and the Bank Secrecy Act.

    It further alleged that these entities did not perform sufficient screenings despite knowing that extremist groups were using their stablecoins for terrorist and other illicit purposes.

    In a statement, Ardoino emphasized Tether’s commitment: “Tether remains steadfast in its commitment to supporting law enforcement efforts and aiding victims in their recovery. We condemn the misuse of USDT or any cryptocurrency for illicit purposes and are fully committed to collaborating with global law enforcement agencies.”

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  • Bitcoin Deja Vu: Capital Inflows Mirror Pre-2021 Bull Run Momentum

    Bitcoin Deja Vu: Capital Inflows Mirror Pre-2021 Bull Run Momentum

    On-chain data shows the cryptocurrency capital inflows currently look similar to December 2020, right before Bitcoin rallied from $18,000 to $65,000.

    Bitcoin & Ethereum Are Getting $19.7 Billion In Capital Injections Currently

    As explained by analyst Ali in a new post on X, Bitcoin and Ethereum are receiving a large amount of capital inflows currently. To showcase these positive flows, the analyst has referred to the “BTC + ETH Net Position Change” indicator from the on-chain analytics firm Glassnode.

    What this metric does is that it keeps track of the 30-day change taking place in the combined realized cap of these top two cryptocurrencies. The “realized cap” here basically refers to the total amount of capital (in USD) that investors have used to purchase a given asset.

    As such, the metric’s net position change could provide hints about whether the total money invested into the coin in question has gone up or down during the past month.

    Now, here is a chart that shows the trend in this indicator for Bitcoin and Ethereum over the past few years:

    The value of the metric appears to have been going up in recent days | Source: @ali_charts on X

    As displayed in the above graph, the Bitcoin + Ethereum Net Position Change has been inside the positive territory recently and has only been climbing up. The trend naturally makes sense, as both of the assets have registered some sharp rises during the past month.

    Currently, the indicator has a value of $19.7 billion. As Ali has pointed out, “This is around the same capital inflow we saw back in December 2020 before BTC surged from $18,000 to $65,000!”

    In the same chart, data for two other metrics is also shown. The first is the “Stablecoin Net Position Change,” which, as its name suggests, keeps track of the monthly inflows and outflows for the major USD stablecoins in the sector.

    Unlike Bitcoin and Ethereum, though, this metric doesn’t make use of the realized cap, but simply the supply of the stables. This is obviously due to the fact that these coins have mostly the same value at all points, so the realized cap wouldn’t be any different from the market cap (which itself is equivalent to the supply as the price is $1).

    From the chart, it’s visible that the stablecoins have also enjoyed positive inflows recently. This means that all three major asset classes in the sector, Bitcoin, Ethereum, and the stables, are receiving capital injections currently.

    Most of the capital inflows and outflows towards the cryptocurrency sector happen through these three. The altcoins only receive their capital through a rotation from these core assets.

    Thus, the stablecoins and top two cryptocurrencies simultaneously enjoying positive inflows have historically been a very bullish combination for the sector as a whole. This constructive combination didn’t form for most of this year but finally has during this latest leg in the rally.

    The last indicator on the chart keeps track of the net incomings and outgoings from the sector as a whole by simply summing up the netflows for BTC + ETH and the stables. As is apparent, this metric also has a value similar to December 2020 at the moment.

    Looking at Bitcoin’s historical performance following December 2020, it could mean that the BTC price is set for another price surge going forward.

    BTC Price

    Bitcoin had recovered above the $43,000 level just earlier, but it appears the coin has seen a setback as it’s now once again trading below the mark.

    Bitcoin Price Chart

    Looks like the price of the asset has shot up during the past day | Source: BTCUSD on TradingView

    Featured image from Shutterstock.com, charts from TradingView.com, Glassnode.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Keshav Verma

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  • Is Tether Becoming America’s Defacto CBDC? Crypto Experts Weigh In

    Is Tether Becoming America’s Defacto CBDC? Crypto Experts Weigh In

    Crypto industry experts have been discussing Tether and its potential to become the dollar-pegged defacto central bank digital currency of the world.

    The comments come in response to Cantor Fitzgerald CEO Howard Lutnick, who told CNBC earlier this week:

    “I’m a big fan of this stablecoin called Tether…I hold their treasuries. So I keep their treasuries, and they have a lot of treasuries. They’re over $90 billion now, so I’m a big fan of Tether.”

    Cantor Fitzgerald is a global investment bank, brokerage, and financial services firm.

    Is Tether Like a CBDC?

    On Dec. 13, Glassnode on-chain analyst “Checkɱate” declared, “Tether is the CBDC.”

    He added that if the US government can shut down Russia’s reserves, it is “hard to argue they are incapable of closing down Tether’s.”

    “Most probable reality is the USG just found an infinite bid for treasuries, exactly when they need a bailout from an unsustainable fiscal situation.”

    He believes the developing world is “dollarizing” as their fiat currencies collapse. As a result, USDT is objectively better than pesos, bolivars, and lira. “Emerging markets essentially fund US retirements, healthcare, military escapades, and gov largess,” he added before concluding:

    “Ironically, this is a win-win scenario for both parties.”

    Bitcoin ESG evangelist David Batten pointed out several key differences between Tether and a CBDC.

    He noted that CBDCs don’t invest millions into green BTC mining, get Bitcoin into University education programs, or partner with a Bitcoin city (Lugano).

    The comments come in response to former portfolio manager Travis Kling who reminded his followers that “Tether is in business because the US govt is cool with that.”

    “Tether is completely beholden to US regulators. If the US govt ever changes its mind for some reason, Tether would be gone the next day.”

    Additionally, there has been a lot of opposition in the US to a Federal Reserve-controlled CBDC.

    Tether Distancing From Uncle Sam

    However, the firm has been distancing itself from Uncle Sam due to the ongoing war on crypto. Furthermore, it is now the stablecoin of choice for the rest of the world.

    Last week, General Partner at Dragonfly, Rob Hadick, commented on the divergence between USDT and USDC supplies and trading volumes.

    “Traders outside of the regulated US/UK firms and increasingly retail in emerging markets are actually using USDT as a mechanism to transact.”

    Tether’s market cap has surged to a record $90 billion, while Circle’s has slumped to around $24 billion. Tether now commands around 70% of the stablecoin market share, whereas Circle’s share has declined to just 18%.

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  • Latin America Takes the Lead as Stablecoin Global Settlements Reach $7 Trillion

    Latin America Takes the Lead as Stablecoin Global Settlements Reach $7 Trillion

    Circle recently reported that the global settlement volume of stablecoins reached $7 trillion last year, nearly half the $14 trillion settled by financial powerhouses Visa and Mastercard.

    This marks a shift towards digital currencies, especially in Latin America, where they have become part of everyday transactions.

    Stablecoins Spearhead Financial Revolution in LATAM

    The rise of stablecoins creates a new wave of financial interoperability and easier global commerce. Latin America, in particular, is at the forefront of this revolution with its rapid adoption and integration of digital currencies into everyday financial activities.

    According to a Mastercard survey, 51% of the consumers in this region have used digital currencies for purchases, with one-third relying on stablecoins for routine shopping. This widespread adoption is driven by a large population having limited access to conventional banking services, offering a lifeline to underbanked people and the large developer base in the region.

    The global financial landscape is shifting as more value is expected to migrate to blockchain-based financial services. This move is anticipated to disrupt traditional financial institutions, offering regulated, innovative financial services across various domains, including savings, payments, and credit.

    Circle, a leader in the stablecoin market, has been instrumental in this shift. Since launching USDC, a dollar digital currency, in 2018, Circle has seen its adoption skyrocket, highlighting the potential and growing acceptance of stablecoins in the financial sector.

    Latin America Embraces USDC in Fintech Innovations

    Latin America’s fintech sector is rapidly integrating USDC with key players in the region to enhance its financial services.

    Mercado Libre, the region’s largest e-commerce platform, now offers digital dollars through USDC, valued for its transparency and interoperability. Airtm has also collaborated with the Venezuelan government and the U.S. to use USDC to bypass political barriers, demonstrating the currency’s potential in humanitarian aid.

    Argentinian fintech Lemon enables nearly two million customers to access and transact with USDC and local currencies seamlessly. Ripio, at the forefront of crypto adoption in the region, has introduced USDC cashback on its cards, further normalizing digital currency in everyday transactions.

    Credix is transforming the credit market by linking investors with unique opportunities in Latin America, leveraging USDC for streamlined transactions. Littio, a Colombian savings and payments app, incorporates USDC and Euro Coin, offering diverse savings options.

    Parfin caters to Brazil’s major financial institutions with various digital asset services, underlining the growing institutional interest in digital currencies. Felix Pago’s innovative remittance platform also enables transfers from the U.S. to Mexico via WhatsApp, powered by USDC in partnership with Mercado Libre, enhancing cross-border transactions.

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