Six years after dropping support for bitcoin and, thus, crypto payments altogether, Stripe is bringing back the service later this summer, though initially only for Circle’s USDC stablecoin.
Banks could flood into stablecoins if new bill passes: S&P Global
The Lummis-GillibrandPayment Stablecoin Act introduced to the Senate could see big banks encouraged to take steps into the stablecoin market, says S&P Global Ratings.
Tether’s Stablecoin Dominance May Wane Following Proposed U.S. Rules: S&P
The new regulations could offer banks a competitive edge by limiting institutions without a banking license to a maximum stablecoin issuance of $10 billion, the report said.
The Ever-Dwindling Chances for a Stablecoin Law
Last week, U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced a joint bill addressing how stablecoins could be regulated in the country. It’s the latest effort to try and get something done in the U.S. legislative front – but is it enough?
Sen. Lummis: It’ll Pay to ‘Choose Circle Over Tether’ Under U.S. Stablecoin Proposal
Circle Internet Financial would have a distinct advantage over global stablecoin leader Tether under U.S. regulations along the lines being suggested by new legislation, according to one of the latest bill’s authors, Sen. Cynthia Lummis (R-Wyo.).
Tether Reorganizes Into 4 Divisions as It Expands Beyond Stablecoins
The company has formed four divisions to reflect its broadening focus: Data, Finance, Power and Edu(cation).
The Solution for Stablecoin Regulation
U.S. Senators Lummis, Gillibrand Take on Stablecoin Legislation With New Bill
U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) are taking another swing at crypto-specific legislation, with a narrowly tailored bill seeking to define how stablecoins – cryptocurrencies that maintain a value with some other asset, like the U.S. dollar – will operate in the U.S.
Crypto-Skeptic Sen. Sherrod Brown Is Open to Advancing Stablecoin Legislation, Bloomberg Reports
Stablecoins Are Beneficial to U.S. Economy, Tether’s Custodian Says
Stablecoins boost demand for U.S. Treasury notes, Howard Lutnick, the CEO of Tether custodian Cantor Fitzgerald, said.
Financial Stability Study Calls for Consistent Regulatory Response to Stablecoins
Countries have varying definitions and categorizations for stablecoins that may pose a risk to financial stability, the report by the Financial Stability Institute said.
Stablecoins Are Seeing Adoption as a Cross-Border Settlement Mechanism: Bernstein
Solana is leading the field in blockchain payments, but the network has scalability issues, the report said.
Stablecoin Growth Is More Important Cue for Crypto Bull Market Than Bitcoin ETF Inflows: Analyst
Rapidly expanding stablecoin supply shows that “fiat money is being moved into crypto at an accelerated pace,” 10x Research’s Markus Thielen said.
What Does Ripple’s Stablecoin Mean for XRP?
XRP has plenty of internet fans but Ripple has struggled to win real enterprise customers. Will its new stablecoin fill the gap and overshadow its existing token?
Stablecoin Expansion Continues as Bitcoin Rally Appears to Stall
The unabated expansion of stablecoin supply shows capital continues to flow into the crypto market, one observer noted.
Tether Added Nearly 8.9K Bitcoin to Holdings in First Quarter: On-Chain Data
The stablecoin issuer’s BTC holdings now top 75,000 tokens worth about $5 billion.
The Benefits of Assets Tokenization
We need to start thinking of blockchains as infrastructure for financial innovation rather than concentrating on the prices of a few digital assets, like bitcoin and ether, says WisdomTree’s digital of digital assets, Benjamin Dean.
Stablecoins Steal The Spotlight: $150 Billion Market Cap, $122 Billion Daily Trades
Stablecoins have recently achieved a significant milestone, surpassing $150 billion in market capitalization, with daily trading volume reaching $122 billion. This achievement marks a notable resurgence and growth in the stablecoin sector, with implications for the broader cryptocurrency ecosystem.
Market Dynamics And Growth Factors
Stablecoins are digital assets designed to maintain a stable value by pegging their price to a reserve asset, such as the US dollar or other fiat currencies. They serve as a crucial bridge between traditional finance and the crypto space, offering stability and liquidity for users and investors.
The recent surge in the stablecoin market can be attributed to several key factors. Firstly, the growing demand for stable assets in the volatile crypto market has driven increased adoption of stablecoins as a safe haven for traders and investors. Additionally, the rise of decentralized finance (DeFi) platforms has fueled the demand for stablecoins as a means of conducting transactions, providing liquidity, and earning yields.
Tether’s Dominance And Market Impact
Tether (USDT), one of the most widely used stablecoins, has played a significant role in driving the growth of the stablecoin market. With a market capitalization exceeding $100 billion, Tether’s dominance underscores its position as a key player in the crypto space.
Undoubtedly dominant in this sector, Tether commands a 70% market share. With a market capitalization of over $31 billion, USD Coin (USDC), the second largest stablecoin, grants Circle’s stablecoin a market share exceeding 20%. At the time of writing, DAI held a 3% market share and $4.7 billion, placing it in third position.
Tether’s market impact extends beyond its role as a stable asset, as it has faced scrutiny and regulatory challenges due to concerns about its reserve backing and transparency. Despite these challenges, Tether’s resilience and continued dominance highlight the strong demand for stablecoins and their utility in the digital economy.
Crypto Enthusiasts Celebrate Stablecoins’ Rising Market Cap
The crypto community is cheering the rising market cap of stablecoins, seeing it as a sign of coming prosperity.
Total Stablecoin Mcap:
Mar 21st. $147b.
Feb 21st. $138b.
Jan 21st. $133b.
Dec 21st. $130b.
Nov 21st. $127b.
Oct 21st. $124b.it is impossible and stupid to not be bullish on DeFi whilst this chart is just up and to the right for the last 6 months. pic.twitter.com/qkcERkIXi8
— ZeroToTom (@zerototom) March 21, 2024
A growing market cap suggests more money is flowing into crypto, providing much-needed liquidity for trading and potentially pushing prices up. Additionally, stablecoins offer a safe haven during market dips, potentially encouraging more investors to enter the broader crypto market. This increased comfort and investment could fuel the entire market’s growth.
Implications For The Crypto Ecosystem
The surpassing of $150 billion in stablecoin market capitalization signifies a maturing and expanding crypto ecosystem. Stablecoins have become essential infrastructure in the digital economy, enabling seamless transactions, cross-border payments, and financial services innovation.
Featured image from Xverse, chart from TradingView
Finance Protocol Usual Introduces Stablecoin Backed by Real-World Assets
Profits are redistributed to the community by rewarding token holders with yields.
Stablecoin USDC Is Making a Comeback: Coinbase
Total market cap of the dollar-linked coin has increased faster than larger rival USDT’s in recent months.