Tag: Stablecoins

Spark Launches Institutional Lending Suite to Channel DeFi Stablecoins

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Spark announced the launch of Spark Prime and Spark Institutional Lending on Wednesday to channel more of its decentralized finance (DeFi) stablecoin reserves into institutional credit markets. Spark, a decentralized asset allocator whose core contributor, Phoenix Labs, previously helped design MakerDAO’s stablecoin and risk architecture, said its new suite is meant to let borrowers tap stablecoin loans without having to run their own DeFi operations.  Spark Prime offers margin‑style lending and off‑exchange settlement powered by Spark’s liquidity engine, while Spark Institutional Lending plugs Spark‑governed markets into qualified custodians such as…

Paolo Ardoino: Stablecoins are core financial infrastructure, Tether’s USAT enhances liquidity for US users, and the inevitability of stablecoin adoption

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Tether’s new stablecoin aims to transform liquidity and bridge the gap between crypto and traditional finance. Key Takeaways Stablecoins are transitioning from niche crypto experiments to core financial infrastructure. Tether is launching USAT, a new stablecoin aimed at enhancing liquidity for US users. The future of finance may see tokenized deposits and transactions moving through stablecoins. Tether is evolving into a technology company focused on societal empowerment. USDT is expected to gain reciprocity as legislation evolves. Tether is a pivotal player in the crypto ecosystem, bridging traditional finance and crypto.…

Mike Belshe: Stablecoins are a safer alternative to banks, BitGo’s operational controls are key for crypto market structure, and the future of finance is in asset tokenization

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Stablecoins are set to reshape banking by offering a safer, more efficient alternative for deposits. Key takeaways Stablecoins provide a safer and more efficient alternative to traditional banking. The future of finance will involve the tokenization of all assets, including equities and bonds. BitGo’s operational controls and regulatory frameworks are crucial for building market structure in crypto. BitGo is stronger than most competitors due to its readiness and strategic planning. Going public benefits BitGo by strengthening the business and enhancing transparency. The US capital markets will transition to digital, bringing…

PBOC Officially Bans ‘Unapproved’ Yuan-Pegged Stablecoins

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The People’s Bank of China (PBOC), the country’s central bank, and seven Chinese regulatory agencies published a joint statement on Friday banning the unapproved issuance of Renminbi-pegged stablecoins and tokenized real-world assets (RWAs). The ban applies to both domestic and foreign stablecoin and tokenized RWA issuers, according to the statement, which was also signed by the Ministry of Industry and Information Technology and China’s Securities Regulatory Commission. A translation of the announcement said: “Stablecoins pegged to fiat currencies perform some of the functions of fiat currencies in disguise during circulation…

Mohamed Afifi: Stablecoins are transforming payment systems, enhancing cross-border transactions, and driving innovation in finance

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Stablecoins are set to revolutionize global payments by enhancing speed and reducing costs. Key takeaways The stablecoin market is still in its infancy, with significant growth potential ahead. Building on stablecoins is currently costly and fragmented, but innovative platforms are emerging to address these challenges. Stablecoins have reduced friction in payment systems, enhancing their utility beyond just crypto and DeFi. The parabolic growth of stablecoins highlights their increasing utility in various financial contexts. Stablecoins have transitioned from experimental technologies to operational tools moving immense value globally. Regulatory clarity has bolstered…

UK Lords Stablecoin Inquiry Hears Criticism of Stablecoins and GENIUS Act

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The United Kingdom’s House of Lords heard critical views on stablecoins Wednesday, with witnesses claiming that tokens were mainly “on- and off-ramps into crypto,” rather than the future of money. The House of Lords held a public session as part of its new inquiry into how stablecoins should be regulated in the country, gathering evidence on their role in payments, banking and financial stability. The Financial Services Regulation Committee (FSRC) grilled witnesses on stablecoins’ competition with banks, cross‑border use, illicit finance risks and their treatment under the Guiding and Establishing…

Binance Shifts $1B SAFU Fund from Stablecoins into Bitcoin

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Binance is shifting its flagship user protection vehicle, the Secure Asset Fund for Users (SAFU), from stablecoin holdings into Bitcoin over the next 30 days, re‑denominating the fund’s reserves into BTC. In an open letter to the crypto community, the exchange framed the move as an expression of its conviction that Bitcoin (BTC) is the core long‑term asset of the crypto ecosystem rather than just another trading product, and said it will rebalance the fund back up to $1 billion if market volatility drives its value below $800 million.  That…

Bank of England to prioritize systemic stablecoins and tokenised collateral policy in 2026

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The Bank of England will focus on advancing a systemic stablecoins regime, setting out policy clarity on tokenised collateral under UK EMIR, and broadening the scope of the Digital Securities Sandbox in 2026, according to Sasha Mills, the bank’s Executive Director for Financial Market Infrastructure. Speaking at the Tokenisation Summit, Mills said the coming year would be “fundamental in shaping the UK’s digital financial future.” “We have the opportunity to build truly holistic digital financial markets in the UK, bringing real benefits to the real economy,” Mills said. Under the…

Coinbase Inches Closer Toward Launching Custom Stablecoins

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Coinbase is testing Flipcash’s in-development stablecoin, USDF, on its backend as part of a new feature that will allow businesses to create their own branded, dollar-backed tokens. The “Coinbase Custom Stablecoins” feature, introduced in December, will let businesses earn rewards on activity and allow them to move funds seamlessly between Coinbase-supported chains, with the tokens to be collateralized by Circle’s USDC (USDC). “A new Coinbase Custom Stablecoin, USDF, has been enabled on Coinbase Exchange for operational testing,” Coinbase posted to X on Tuesday, adding:  “This is a backend test phase…

Stablecoins Threaten Bank Deposits, Standard Chartered Warns

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Stablecoins pose a real risk to bank deposits both globally and in the United States, according to a new report by Standard Chartered analysts. The delay of the US CLARITY Act — a bill proposing to prohibit interest on stablecoin holdings — is a “reminder that stablecoins pose a risk to banks,” Geoff Kendrick, global head of digital assets research at Standard Chartered, said in a report on Tuesday seen by Cointelegraph. “We estimate that US bank deposits will decrease by one-third of stablecoin market cap,” the analyst said, referring…